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Tesla Model 3 Performance targets BMW M3 with ultra-competitive pricing in China

[Credit: Motor Trend]

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Following an announcement from authorities about the upcoming suspension of extra tariffs placed on vehicles imported from the United States, Tesla has reduced the pricing of some Model S and Model X variants in China. The Model 3, which is expected to start deliveries next year, also received some price adjustments.

As it turns out, the recent price reduction to the Model 3 Performance has made the vehicle incredibly competitive in price against rivals like the BMW M3 and the Mercedes-AMG C 63 Coupe. When Tesla initially allowed Chinese reservation holders to configure their Model 3, the Performance variant was listed with a price of 689,000 RMB (roughly $100,000). With the recent adjustments, though, the Performance variant’s price has been reduced to just 560,000 RMB (around $81,000).

By adopting such a pricing strategy, Tesla has all but made the Model 3 Performance as one of the best bang-for-the-buck sports sedans in the country. After all, the BMW M3 — a vehicle that the all-electric car is competing with — currently sells for 998,000 RMB ($162,000). The Mercedes-AMG C 63 Coupe, another high-performance, luxury sedan competing in the same market, currently costs 1,198,000 RMB ($173,623).

The current prices of the Model 3 Performance, BMW M3 and Mercedes-AMG C 63 Coupe in China. (Credit: vincent13031925/Twitter)

With instant torque, superior 0-60 mph times, free over-the-air updates, and Enhanced Autopilot, the Model 3 Performance’s 560,000 RMB price is nothing short of a bargain. Being an all-electric car, the Model 3 Performance is also a zero-emissions vehicle, making it a perfect fit for China’s aggressive push towards the adoption of EVs. With even its price being an advantage against its rivals, it would not be surprising if the Tesla Model 3 Performance ends up outselling its ICE-powered rivals in China.

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Since adjusting the prices of its vehicles, Tesla’s stores in the Asian economic powerhouse have experienced a large influx of customers. Reports from local media outlets, for one, noted that numerous electric car buyers visited Tesla’s retail stores after the Model S and X’s prices were lowered. It did not take long before Tesla began sending out emails to customers apologizing for delays resulting from the increase in demand for its vehicles.

Tesla’s electric cars might already be more affordable with their updated prices, but the company is aiming to lower the cost of its vehicles even further. The electric car maker is currently in the process of building Gigafactory 3, a facility that produces both battery packs and electric cars. Reports from local Chinese media have suggested that the factory would start producing vehicles in the second half of 2019. Two vehicles will be manufactured in Gigafactory 3 — the Model 3 sedan and the Model Y SUV, both of which are set to compete with mainstream local-made EVs.

The construction of Gigafactory 3 is already underway. Recent drone footage reveals that a perimeter fence has been set up in the company’s 864,885-square meter plot of land in Shanghai’s Lingang Industrial Zone. The site has been attracting a lot of interest from the country’s workforce as well, with a recent job fair getting extended due to the overwhelming number of applicants applying for openings on Gigafactory 3.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

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Credit: Ford Motor Co.

Ford is canceling the all-electric F-150 Lightning and also announced it would take a $19.5 billion charge as it aims to quickly restructure its strategy regarding electrification efforts, a massive blow for the Detroit-based company that was once one of the most gung-ho on transitioning to EVs.

The announcement comes as the writing on the wall seemed to get bolder and more identifiable. Ford was bleeding money in EVs and, although it had a lot of success with the all-electric Lightning, it is aiming to push its efforts elsewhere.

It will also restructure its entire strategy on EVs, and the Lightning is not the only vehicle getting the boot. The T3 pickup, a long-awaited vehicle that was developed in part of a skunkworks program, is also no longer in the company’s plans.

Instead of continuing on with its large EVs, it will now shift its focus to hybrids and “extended-range EVs,” which will have an onboard gasoline engine to increase traveling distance, according to the Wall Street Journal.

“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said in a statement.

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While unfortunate, especially because the Lightning was a fantastic electric truck, Ford is ultimately a business, and a business needs to make money.

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Ford has lost $13 billion on its EV business since 2023, and company executives are more than aware that they gave it plenty of time to flourish.

Andrew Frick, President of Ford, said:

“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”

CEO Jim Farley also commented on the decision:

“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting.”

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Farley also said that the company now knows enough about the U.S. market “where we have a lot more certainty in this second inning.”

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SpaceX shades airline for seeking contract with Amazon’s Starlink rival

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Credit: Richard Angle

SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.

Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.

Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.

A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.

American CEO Robert Isom said (via Bloomberg):

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“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”

Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.

The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:

“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”

CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”

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There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.

SpaceX successfully launches 100th Starlink mission of 2025

Currently, the company is focusing on expanding into new markets, such as Africa and Asia.

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Tesla Model Y Standard stuns in new range test, besting its Premium siblings

Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.

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Credit: Tesla

The Tesla Model Y Standard stunned in a new range test performed by automotive media outlet Edmunds, besting all of its Premium siblings that are more expensive and more luxurious in terms of features.

Testing showed the Model Y Standard exceeded its EPA-estimated range rating of 321 miles, as Edmunds said it is the “longest-range Model Y that we’ve ever put on our loop.” In the past, some vehicles have come up short in comparison with EPA ranges; for example, the Model Y’s previous generation vehicle had an EPA-estimated range of 330 miles, but only drove 310.

Additionally, the Launch Series Model Y, the first configuration to be built in the “Juniper” program, landed perfectly on the EPA’s range estimates at 327 miles.

It was also more efficient than Premium offerings, as it utilized just 22.8 kWh to go 100 miles. The Launch Series used 26.8 kWh to travel the same distance.

It is tested using Edmunds’ traditional EV range testing procedure, which follows a strict route of 60 percent city and 40 percent highway driving. The average speed throughout the trip is 40 MPH, and the car is required to stay within 5 MPH of all posted speed limits.

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Each car is also put in its most efficient drive setting, and the climate is kept on auto at 72 degrees.

“All of this most accurately represents the real-world driving that owners do day to day,” the publication says.

With this procedure, testing is as consistent as it can get. Of course, there are other factors, like temperature and traffic density. However, one thing is important to note: Tesla’s newer vehicles have continued to meet or exceed their EPA estimates. This is a drastic change, as every 2018-2023 model year Tesla that Edmunds assessed did not meet its range estimates.

Tesla Model Y Standard vs. Tesla Model Y Premium

Tesla’s two Model Y levels both offer a great option for whichever fits your budget. However, when you sit in both cars, you will notice distinct differences between them.

The Premium definitely has a more luxurious feel, while the Standard is stripped of many of the more premium features, like Vegan Leather Interior, acoustic-lined glass, and a better sound system.

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You can read our full review of the Model Y Standard below:

Tesla Model Y Standard Full Review: Is it worth the lower price?

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