Tesla launches new Model 3 in China with longer range

afr.com:

Shanghai | Tesla shares fell more than 4 per cent on Friday after the electric automaker unveiled a restyled, China-made Model 3 with a longer driving range and a higher price.

The company also slashed the US price of its “full self-driving” (FSD) driver assistant software by 20 per cent to $US12,000 ($18,625), while cutting prices of its premium models Model X and Model S.

Polished. The Model 3 has been updated. AP

The launch of the new Model 3 sedan marks the first time the automaker has rolled out a vehicle in China ahead of the US, underscoring its growing reliance on the country where it is in a race for market share with BYD.

The vehicle is being built at Tesla’s Shanghai plant and comes with a starting price that is 12 per cent higher than the previous, base model in China. It will also be exported to other markets in Asia, Europe and the Middle East.

Tesla cut the prices for its premium Model S and Model X by between about 14 per cent and 21 per cent, in China and the US – its two biggest markets.

Raising the base price on the Model 3, Tesla’s top-selling model after the Y, could help protect margins. But the price cuts for its more premium cars highlight the intense competition EV makers face, especially in China.

To bolster its market share, the automaker led by Elon Musk has started a price war this year that has boosted deliveries but sent its industry-leading margins to a four-year low.

Tesla’s much-touted FSD, whose technology has been in the crosshairs of regulators over safety concerns, will now cost $US12,000.

The new Model 3 is Tesla’s first change to its mass-market car line-up since it launched its global bestseller, the Model Y, in 2020.

Tesla did not announce a launch date for the new Model 3 in the