Tesla (TSLA) introduces updated Model 3 in North America

Tesla (NASDAQ: TSLA) introduced the redesigned iteration of its Model 3 compact sedan in North America on Wednesday, maintaining its prices despite the refresh. This update comes after the vehicle garnered significant interest upon its debut in China and Europe.

The move aims to rejuvenate Tesla's aging vehicle lineup within its primary market. It follows a price competition last year that enabled the company to achieve its annual delivery targets but impacted its profit margins.

The updated versions of the long-range and rear-wheel drive Model 3 variants boast new enhancements, including a rear display catering to backseat passengers, as detailed on Tesla's website.

The updated long-range variant now boasts an extended range of 341 miles per charge, a boost from the previous 333 miles.

Additionally, Tesla has revamped its wheel designs, introducing two fresh colors, namely "Stealth Grey" and "Ultra Red."

The rear-wheel drive variant of the Model 3 comes with a price tag of $38,990. Meanwhile, the long-range variant is priced at $45,990, following their disqualification from a $7,500 federal tax credit as of the close of 2023, due to new guidelines established under the U.S. Inflation Reduction Act.

Tesla has taken down the Model 3 Performance variant, previously priced at $50,990 (prior to the federal tax credit), from its North American websites.

The enhanced Model 3, developed under the project codename "Highland," made its debut in China last September, carrying a higher price tag. It became available for purchase in Europe a month afterward.

Analysts connected Tesla's exceptional quarterly delivery figures earlier this month to the design changes, coupled with discounts and incentives the company provided towards the end of 2023.

Shares of TSLA are up 0.17% in pre-market trading on Wednesday.

By Michael Elkins | [email protected]

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