Palo Alto, California – Tesla announced last night that it has released an updated version of its Model 3 electric vehicle (EV) in North America. The news led to a slight increase in Tesla’s stock price early Wednesday. The announcement was made through the social platform X, founded by Tesla CEO Elon Musk.
In the fourth quarter of last year, Tesla began delivering the updated Model 3, called “Highland,” in China and Europe. While the exterior changes are minimal, the refreshed Model 3 boasts some internal refinements.
The updated Model 3 is available in two variants: Rear Wheel Drive (RWD) and Long Range (LR), priced at $38,990 and $45,990, respectively. These prices remain unchanged from the latest prices of the original Model 3. However, due to stricter battery sourcing rules, the RWD and LR trims are no longer eligible for a $7,500 IRA tax credit.
The Model 3 Performance, previously offered by Tesla, is currently unavailable. The older version of the Performance trim had a price tag of $50,990, or $43,490 including tax credits.
Interestingly, even after the tax credit is factored in, the updated Model 3 Long Range is now pricier than all the variants of the Model Y.
Market response to the announcement led to a modest 0.4% increase in Tesla’s stock price during premarket trade. However, on Tuesday, the stock experienced a 2.3% decline, falling to $234.96. Although it dropped below the 50-day moving average, it still remained above the 200-day line. Tesla currently has a 265.13 handle buy point from a double-bottom base. Nevertheless, MarketSmith notes that the relative strength line is approaching its October lows.
In conclusion, Tesla has introduced an updated version of its Model 3 in North America. The EV giant has made minimal changes to the vehicle’s exterior but has implemented some refinements internally. The updated Model 3 is available in RWD and LR variants. However, due to stricter sourcing rules, these trims no longer qualify for a $7,500 IRA tax credit. Tesla is currently not offering the Model 3 Performance variant, and the updated LR variant is more expensive than all variants of the Model Y, even after tax credits. As a result of the announcement, Tesla’s stock experienced fluctuations, with a slight increase during premarket trade but a decline on Tuesday.