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 dominates JD Power EV Satisfaction ranking, grabbing top two spots
The Model 3 was the highest ranking EV considered, with a score of 804, followed by the Model Y at 797, the BMW i4 at 795, and the BMW iX at 794.
Tesla dominated JD Power’s EV Owner Satisfaction ranking for 2026, grabbing the top two spots in the survey with the Model 3 and Model Y.
The two Tesla models grabbed the first and second spots, respectively, with scores of 804 and 797 out of 1,000 possible points.
Brent Gruber, Executive Director of JD Power’s EV practice, said:
“EV market share has declined sharply following the discontinuation of the federal tax credit program in September 2025, but that dip belies steadily growing customer satisfaction among owners of new EVs. Improvements in battery technology, charging infrastructure, and overall vehicle performance have driven customer satisfaction to its highest level ever. What’s more, the vast majority of current EV owners say they will consider purchasing another EV for their next vehicle, regardless of whether they benefited from the now-expired federal tax credit.”
JD Power’s study showed three key findings: Public charging satisfaction was higher than ever, premium BEVs saw more pronounced quality improvements, and BEVs held their satisfaction ratings compared to plug-in hybrid electric vehicles (PHEVs).
Tesla Grabs Top 2 Spots
Despite what some publications might try to make you believe, Tesla is still the cream of the crop when it comes to EV ownership, and real-world owners surveyed by JD Power will prove that to you.
The Model 3 was the highest ranking EV considered, with a score of 804, followed by the Model Y at 797, the BMW i4 at 795, and the BMW iX at 794. The segment average for “Premium Battery Electric Vehicles” was 786. The Cadillac OPTIQ (762), Rivian R1S (758), Lucid Air (740), Rivian R1T (739), and Audi Q6 e-Tron (690) all finished below that threshold.
Meanwhile, a separate category for “Mass Market Battery Electric Vehicles” had the Ford Mustang Mach-E as the EV with the highest rating at 760. The segment average for this class was 727.
🚨 Tesla topped J.D. Power’s new EV Owner Satisfaction Study for 2026, with the Model 3 (804) and Model Y (797) being the top-rated vehicles, beating out the BMW i4 (795) and iX (794)
Additionally, Tesla Superchargers helped public charging satisfaction rise to new highs:
“The… pic.twitter.com/4WIxoDxHig
— TESLARATI (@Teslarati) February 19, 2026
Tesla Supercharging Improves Public Charging Satisfaction
JD Power said the availability of public charging is “by far the most improved index factor,” and that the consistent growth of publicly available charging has helped push many consumer sentiments in a positive direction.
Most of this is due to the Tesla Supercharger Network and its expansion. However, Tesla owners are also becoming more satisfied with the infrastructure after expanding access to other EV brands, the study said.
News
Tesla Model 3 wins Edmunds’ Best EV of 2026 award
The publication rated the Model 3 at an 8.1 out of 10, and with its most recent upgrades and changes, Edmunds says, “This is the best Model 3 yet.”
The Tesla Model 3 has won Edmunds‘ Top Rated Electric Car of 2026 award, beating out several other highly-rated and exceptional EV offerings from various manufacturers.
This is the second consecutive year the Model 3 beat out other cars like the Model Y, Audi A6 Sportback E-tron, and the BMW i5.
The car, which is Tesla’s second-best-selling vehicle behind the popular Model Y crossover, has been in the company’s lineup for nearly a decade. It offers essentially everything consumers could want from an EV, including range, a quality interior, performance, and Tesla’s Full Self-Driving suite, which is one of the best in the world.
The Tesla Model 3 has won Edmunds Top EV of 2026:
“The Tesla Model 3 might be the best value electric car you can buy, combining an Edmunds Rating of 8.1 out of 10, a starting price of $43,880, and an Edmunds-tested range of 338 miles. This is the best Model 3 yet. It is… pic.twitter.com/ARFh24nnDX
— TESLARATI (@Teslarati) February 18, 2026
The publication rated the Model 3 at an 8.1 out of 10, and with its most recent upgrades and changes, Edmunds says, “This is the best Model 3 yet.”
In its Top Rated EVs piece on its website, it said about the Model 3:
“The Tesla Model 3 might be the best value electric car you can buy, combining an Edmunds Rating of 8.1 out of 10, a starting price of $43,880, and an Edmunds-tested range of 338 miles. This is the best Model 3 yet. It is impressively well-rounded thanks to improved build quality, ride comfort, and a compelling combination of efficiency, performance, and value.”
Additionally, Jonathan Elfalan, Edmunds’ Director of Vehicle Testing, said:
“The Model 3 offers just about the perfect combination of everything — speed, range, comfort, space, tech, accessibility, and convenience. It’s a no-brainer if you want a sensible EV.”
The Model 3 is the perfect balance of performance and practicality. With the numerous advantages that an EV offers, the Model 3 also comes in at an affordable $36,990 for its Rear-Wheel Drive trim level.
News
Tesla launches new Model 3 financing deal with awesome savings
Tesla is now offering a 0.99% APR financing option for all new Model 3 orders in the United States, and it applies to all loan terms of up to 72 months.
Tesla has launched a new Model 3 financing deal in the United States that brings awesome savings. The deal looks to move more of the company’s mass-market sedan as it is the second-most popular vehicle Tesla offers, behind its sibling, the Model Y.
Tesla is now offering a 0.99% APR financing option for all new Model 3 orders in the United States, and it applies to all loan terms of up to 72 months.
It includes three Model 3 configurations, including the Model 3 Performance. The rate applies to:
- Model 3 Premium Rear-Wheel-Drive
- Model 3 Premium All-Wheel-Drive
- Model 3 Performance
The previous APR offer was 2.99%.
NEWS: Tesla has introduced 0.99% APR financing for all new Model 3 orders in the U.S. (applies to loan terms of up to 72 months).
This includes:
• Model 3 RWD
• Model 3 Premium RWD
• Model 3 Premium AWD
• Model 3 PerformanceTesla was previously offering 2.99% APR. pic.twitter.com/A1ZS25C9gM
— Sawyer Merritt (@SawyerMerritt) February 15, 2026
Tesla routinely utilizes low-interest offers to help move vehicles, especially as the rates can help get people to payments that are more comfortable with their monthly budgets. Along with other savings, like those on maintenance and gas, this is another way Tesla pushes savings to customers.
The company had offered a similar program in China on the Model 3 and Model Y vehicles, but it had ended on January 31.
The Model 3 was the second-best-selling electric vehicle in the United States in 2025, trailing only the Model Y. According to automotive data provided by Cox, Tesla sold 192,440 units last year of the all-electric sedan. The Model Y sold 357,528 units.
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