Tesla Model 3
Tesla’s Model 3 is already a game changer: Tech, Value and Economics prevail
Yesterday I spoke to BBC Newsday about the Tesla Model 3 and one of the questions they asked was “is the Tesla Model 3 a game changer”. Even before incentives the Model 3 competes with other entry level luxury vehicles like the BMW 3 series and Audi A4. With incentives it moves even further down-market, competing with big sellers like the Toyota Camry (the USA’s top selling car in 2016). That definitely moves Tesla into the mass market with a lot of opportunity to grow. There are some additional factors though that I think makes it a true game changer.
Industry Affect
It’s already a game changer. Just over a year ago most automakers still dismissed Tesla as a niche manufacturer and articles still wrote about how electric vehicles were decades out or may never come to fruition. Then Telsa had almost 400,000 preorders for a vehicle no one had actually driven, most had only seen through their computer screens, and wouldn’t be available for over a year. I was one of those people.
Fast forward to today, with manufacturers practically falling over each other to announce their own electric vehicle programs and new targets. The discussion has flipped. Articles are no longer written about if electric vehicles are coming but how quickly. I think we have the Tesla Model 3 to thank for that.
Value Proposition
Preorders are one thing, but can the Model 3 compete in a world of mostly combustion vehicles? That will depend on the value customers assign to it. My opinion is that Model 3 is the first lower cost electric vehicle to cross the ‘value threshold’. What I mean by that is that a buyer considering two vehicles in the same class and quality, one electric and one combustion, would chose the Model 3 over the combustion option. The Model 3 is just the better all-around car.
(Tesla)
Consider the Chevy Bolt, a good car, but a more difficult sell on value proposition. Does it actually provide $37,500 worth of value to the buyer or could I purchase an internal combustion vehicle that provides me more value (as per classic capitalism this is largely ignoring the societal and environmental benefits to others, which can be difficult for most buyers to quantify – it’s not right, just reality).
“The Model 3 is just the better all-around car”
The factors at play are complex, the initial purchase price, comfort, reliability, range, acceleration and speed, safety, handling, aesthetics, operating costs, convenience, and environmental impact. These all go into a buyer’s value calculation, mostly subconsciously. For me I can’t think of another vehicle that hits those categories as well as the Model 3.
Economics and Cost Reductions
Customer value is great but Tesla more than any other automaker needs to produce electric vehicles with a decent profit margin. It doesn’t have a lot of gas guzzling expensive SUVs to offset losses on EVs. Other automakers have claimed they are perfectly willing to make EVs at a loss, which seems largely driven by meeting emissions targets in key US states (California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont). That may also be why GM is pulling back on Bolt production, if they’re approaching their quotas in those states . In Ontario Canada, which has no such requirements, the Chevy Bolt is sold out until January 2018 and the only one available to test drive is at the non-profit organization Plug’n Drive in Toronto. A lot has been made in the past of Tesla’s business losses, but those include capital investments and R&D. They do in fact make a profit on their vehicles, but invest more money on improvements and expansions than that profit totals. Making an affordable electric vehicle at a profit is a challenge Tesla seems confident they’ve achieved. That’s a big deal. A game changer.
Technology Innovation
To be a game changer though the Model 3 can’t just be another lower priced electric vehicle. It has to be innovative and it is absolutely that. It will be using a new battery format, autonomous driving hardware, and it’ll likely be using Tesla’s newly optimized powertrain with 1 million miles capability + faster acceleration.
Tesla Model 3 prototype from the March 31, 2016 unveiling event in Hawthorne, CA
With those improved batteries and powertrain it should be one of the most efficient electric vehicles on the road. There’s also the Supercharger network which really opens up the options for long distance driving, more than any other manufacturer. These capabilities will set a new benchmark for affordable electric vehicles.
Tonight it will be very interesting to see what the final specs. Will anyone be able to match it? Let the (affordable) EV space race begin!
What do you think? Is the Model 3 a game changer and why?
News
Tesla trims Model 3 Long Range RWD price in China by RMB 10,000
The update was implemented by Tesla just weeks after the variant’s introduction.
Tesla has cut the price of its recently introduced long-range rear-wheel drive (RWD) Model 3 in China.
The update was implemented by the electric vehicle maker just weeks after the variant’s introduction.
Tesla China’s Model 3 lineup
The Model 3 RWD Long Range, which carries a CLTC range of 830 kilometers, is now priced from RMB 259,500 ($36,390), down RMB 10,000 ($1,400) from its initial RMB 269,500 ($37,800) price. Deliveries for the updated variant are currently listed at 1-3 weeks for new orders.
Tesla introduced the long-range RWD Model 3 in China on August 12, positioning it as a longer range alternative to the entry-level Model 3 RWD, which is priced at RMB 235,500 ($33,000). Despite the recent update to the price of the Model 3 RWD Long Range, the cost for the other three Model 3 trims remains unchanged.
Delivery times for the base Model 3 RWD and Model 3 Dual Motor AWD are listed at 1–3 weeks across the range, while the Model 3 Performance is listed at 3–5 weeks.
Sales momentum and exports
Tesla continues to offer purchase incentives this month, including five-year zero-interest financing and an RMB 8,000 insurance subsidy, as noted in a CNEV Post report.
Model 3 sales in China reached 9,851 units in July, down 0.78% year-on-year and 40.8% month-over-month compared to June. Still, cumulative sales for the Model 3 between January and July totaled 101,770 units, reflecting a 26.5% year-on-year increase in sales.
Exports of the Model 3 stood at 12,197 units in July, down 46.5% year-on-year but surging 228.8% from June. For the first seven months of 2024, Model 3 exports totaled 70,718 units, a 42% decline.
News
Tesla is bringing back something it took from the Model 3…for a price
“Modify your Model 3 by replacing the turn signal buttons on your steering wheel with turn signal stalks. This modification is included in the purchase price and is installed by a Tesla Service Center.”
Tesla is bringing back the Model 3’s turn signal stalk in China after removing the part with the refresh of the all-electric sedan early last year.
However, it is going to cost you.
In 2024, Tesla launched the Model 3 “Highland,” a refreshed version of the vehicle that included several large-scale changes. One of the most noticeable was the lack of a turn signal stalk, something the company chose to remove and instead implement turn signal buttons on the steering wheel.
The buttons were met with mixed reviews, as some drivers complained that it was too difficult to get used to them. Others had no problem with the change, noting that it was slightly more convenient for them or that they enjoyed the minimalistic look.
Now, Tesla is offering Model 3 owners in China the opportunity to replace the stalk for a price of ¥ 2,499, or about $350:
“Modify your Model 3 by replacing the turn signal buttons on your steering wheel with turn signal stalks. This modification is included in the purchase price and is installed by a Tesla Service Center.”
Tesla notes on its website that the service is available for Model 3 vehicles without stalks manufactured after February 7, 2025. Any car without a stalk that was manufactured before that date will have the service available to them in the future.
Installation can be performed at a Service Center or by the owner. However, Tesla notes that it is not responsible for any damages resulting from self-installation and recommends that the part be put in by an employee.
The cockpit of the Tesla lineup has been under intense scrutiny by the company in recent years. After a few changes to things like the stalk, steering wheel shape, and others, Tesla has usually given drivers the chance to have things reverted back to their preferences if they want.
They did this for the Model S and Model X a few years ago after implementing the yoke steering wheel.
Tesla Steering Wheel Retrofits have started, and it’s easy to get rid of your yoke
The stalk was not supposed to be removed from the Model 3 and Model Y, but Tesla chose to do so with the refresh last year.
It seems the minimalization of the cockpit, overall, is a move that prepares drivers for autonomy, as eventually, Teslas will be void of pedals, steering wheels, and any other apparatus that are used to control the car.
News
Tesla offers new deal on used inventory that you won’t want to pass up
Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.
Tesla is offering a new deal on its used vehicle inventory that consumers looking for a great deal won’t want to pass up.
Traditionally, Tesla has not allowed potential car buyers to lease its used inventory. The only two options were to buy with cash or finance it through Tesla or a bank.
However, with the elimination of the $7,500 new and $4,000 used EV tax credits, Tesla is breaking its own rules and is now offering lease deals on its used vehicle inventory, but only in a couple of states, as of right now.
Tesla is ready with a perfect counter to the end of US EV tax credits
Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.
The deals are tremendous and can cost as little as $0 down and under $225 per month for some vehicles.
Lease a Pre-Owned Model 3 or Y
As low as $0 down & $225/month
Now available in CA & TX https://t.co/LRYRIZP8VZ
— Tesla North America (@tesla_na) August 19, 2025
Tesla also allows customers to buy the vehicle at the end of their lease deal, which enables some really great ways to end up an owner of the car you plan to drive for the next two or three years.
The lease deal also helps Tesla rid itself of older vehicles that might not be of future use to the company. It formerly planned to use leased vehicles in its eventual Robotaxi fleet, but many of the cars in its used inventory have Hardware 3, which is less capable than Hardware 4, which is installed in the new Model 3 and Model Y.
More importantly, Tesla is giving people yet another way to be in the market for a Tesla before the tax credit ends on September 30.
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