Tesla Ups the EV Game With Updated Model 3 and Strategic Pricing

In an ambitious move to bolster sales, Tesla Inc. has launched an updated Model 3 sedan and initiated significant price reductions on its premium cars. The newly unveiled Model 3 iteration integrates a sleeker, sportier aesthetic, two fresh colour options - Stealth Grey and Ultra Red, and includes advanced interior features such as a 17-speaker sound system, customisable ambient lighting, and an 8-inch touchscreen for rear-seat passengers. One of the major upgrades is the increased single-charge range, standing now at 606 kilometres.

Albeit being on the higher end with a price tag of 259,900 yuan (R673,918), which is 12% more than its predecessor, the refreshed Model 3 was crucial for Tesla to keep pace with the fierce competition posed by Chinese automakers BYD Co., Nio Inc., and Xpeng Inc.

Bill Russo, CEO of Automobility Ltd., traces the significance of constant updates in the ever-evolving Chinese EV market, comparing the scenario to selling a six-year-old iPhone. He adds that persevering a higher price for an updated version in such a demanding market is a challenge Tesla has to face.

The state of affairs has escalated, owing to the steep reduction in Tesla's car prices, which has also instigated concerns of spurring a price war impacting profit margins. Competitors, including Xpeng and Geely Automobile Holding Ltd. and Nio, have also taken a proactive stance, slashing prices and planning new product launches to compete directly against Tesla.

The refreshed Model 3 is now available on order sites in China, Europe, the Middle East, and Australia.