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 Model 3 and Model Y dominate China’s real-world efficiency tests
The Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km.
Tesla’s Model 3 and Model Y once again led the field in a new real-world energy-consumption test conducted by China’s Autohome, outperforming numerous rival electric vehicles in controlled conditions.
The results, which placed both Teslas in the top two spots, prompted Xiaomi CEO Lei Jun to acknowledge Tesla’s efficiency advantage while noting that his company’s vehicles will continue refining its own models to close the gap.
Tesla secures top efficiency results
Autohome’s evaluation placed all vehicles under identical conditions, such as a full 375-kg load, cabin temperature fixed at 24°C on automatic climate control, and a steady cruising speed of 120 km/h. In this environment, the Tesla Model 3 posted 20.8 kWh/100 km while the Model Y followed closely at 21.8 kWh/100 km, as noted in a Sina News report.
These figures positioned Tesla’s vehicles firmly at the top of the ranking and highlighted their continued leadership in long-range efficiency. The test also highlighted how drivetrain optimization, software management, and aerodynamic profiles remain key differentiators in high-speed, cold-weather scenarios where many electric cars struggle to maintain low consumption.
Xiaomi’s Lei Jun pledges to continue learning from Tesla
Following the results, Xiaomi CEO Lei Jun noted that the Xiaomi SU7 actually performed well overall but naturally consumed more energy due to its larger C-segment footprint and higher specification. He reiterated that factors such as size and weight contributed to the difference in real-world consumption compared to Tesla. Still, the executive noted that Xiaomi will continue to learn from the veteran EV maker.
“The Xiaomi SU7’s energy consumption performance is also very good; you can take a closer look. The fact that its test results are weaker than Tesla’s is partly due to objective reasons: the Xiaomi SU7 is a C-segment car, larger and with higher specifications, making it heavier and naturally increasing energy consumption. Of course, we will continue to learn from Tesla and further optimize its energy consumption performance!” Lei Jun wrote in a post on Weibo.
Lei Jun has repeatedly described Tesla as the global benchmark for EV efficiency, previously stating that Xiaomi may require three to five years to match its leadership. He has also been very supportive of FSD, even testing the system in the United States.
News
Tesla Model 3 and Model Y named top car buys in Norway
Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability.
Norway’s annual roundup of the best car purchases featured Tesla’s two main sellers this year, with the Model 3 and Model Y securing top positions in their respective segments.
Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability. The verdict comes as electric vehicle adoption remained above 95% of new vehicle sales in the country.
Tesla Model 3 strengthens its value position
Among compact EVs, the Tesla Model 3 maintained its position as the best overall buy thanks to its strong blend of performance, efficiency, and updated features. Reviewers noted that every trim offered compelling value, especially with the all-electric sedan’s improved cabin ergonomics and the return of the turn-signal stalk, which was one of the few previous complaints among drivers.
The Model 3’s mix of long-range capability, low operating costs, and responsive handling has continued to set the benchmark for compact EVs in Norway. While competitors from Hyundai, Volkswagen, and Peugeot have narrowed the gap, Tesla’s price-to-capability ratio has remained difficult to beat in this segment, Motor.no reported.
“The Model 3 clearly offers the best value for money in the compact class, no matter which version you choose. Now it also gets the turn signal lever back. This eliminates one of the few flaws in a driving environment that many believe is the best on the market,” the publication wrote.
Tesla Model Y claims its crown
The Tesla Model Y emerged as Norway’s top family-car purchase this year. The latest refresh introduced improvements in ride quality, styling, and interior materials, allowing the Model Y to deliver a more premium driving experience without a substantial price increase.
Reviewers praised its spacious cabin, strong safety profile, and practical range, all of which reinforced its appeal for families needing an all-purpose electric crossover. The Model Y remains especially notable given its continued popularity in Norway even as Tesla faces declining sales in other global markets.
“The Model Y is back as the winner in the family class. The upgrade in the new year was even more extensive than expected. It is a slightly more elegant and significantly more comfortable Model Y that solidifies its position as Norway’s best car purchase in the most important class,” the Norwegian motoring publication noted.
News
Tesla axed one of the Model Y’s best features in ‘Standard’ trims: here’s why
Lars Moravy explains why Tesla chose to go with a glass roof in the new Standard trims, despite it not being visible.
Tesla chose to implement a glass roof on the new Model Y ‘Standard’, despite the fact that you won’t be able to see it from the inside.
In the new Model Y ‘Standard’ configuration, one of the biggest changes is the lack of a glass roof, which is one of the more unique features Tesla offers.
How Tesla’s Standard models will help deliveries despite price disappointment
The entire roof of the Model Y’s ‘Premium’ and Performance trims is glass, giving everyone in the car an astounding view of the sky.
However, Tesla chose to cover this up in the new ‘Standard’ trim level. Here’s a look at it:
Credit: ItsKimJava | X
Despite it not being visible from the inside, the roof is still made of glass. It is only visible from the outside. Even if you removed the headliner in the Model Y ‘Standard,’ you would not be able to see the outside, because the glass is opaque:
Fun fact about the Standard Model Y closed glass roof. A Tesla engineer told us that the glass is opaque, so even if you removed the textile lining on the inside, you would not see the outside. 😔 More details to come on our first drive video this Friday. pic.twitter.com/N4uZFlblBB
— Kim Java (@ItsKimJava) October 8, 2025
Tesla’s Vice President of Powertrain, Lars Moravy, commented on the use of glass in the Premium models and how it differs from the glass in the Standard trims:
“All glass is NOT created equal. Remember, the Model Y Premium glass is laminated with silver IR reflective coatings to make it super comfy and reject solar load… the standard is not… plus LOTS of people wanted a closed headliner, always trying to listen (and improve road noise at the same time).”
The decision to cover up the glass while still using it was an efficiency choice. Moravy said Tesla chose to keep the glass for the new Standard models due to “cost, supply chain, and manufacturing efficiency.”
Cost, supply chain and manufacturing efficiency in our factories
— Lars (@larsmoravy) October 9, 2025
Tesla launched the Standard models on Tuesday. The cars were effectively a counter to the loss of the $7,500 EV tax credit.
Tesla’s northernmost Supercharger in North America opens
Tesla hints toward Premium Robotaxi offering with Model S testing
