By Tesla, known for its innovations in the electric vehicle industry, has finally introduced a significant update to its popular Model 3. While the company has previously released higher-horsepower versions of the Model S and Model X, this marks the first major overhaul of a Tesla vehicle.
The updated Model 3 is now available for sale in the U.S., as stated on the Tesla website. Although the exact release date was not disclosed, Tesla typically avoids extravagant announcements and has chosen not to comment on the matter.
This model “refresh,” as industry experts refer to it, has already proven successful in China where sales have seen a notable boost. Prior to the upgrade, Tesla was selling approximately 2,500 Model 3 vehicles per week in the country. Since the release of the updated version, that number has increased to around 3,500 according to registration data analyzed by Citi analyst Jeff Chung.
The new Model 3 boasts various upgrades, including enhancements to the interior, sound system, seats, and more. Tesla’s commitment to continuous improvement aligns with the practice of other automakers who regularly update their models to cater to evolving consumer preferences. For instance, while the Ford F-150 has been the best-selling vehicle in the U.S. for over four decades, a 2023 F-150 bears little resemblance to its counterpart from 1982.
Tesla’s latest update to the Model 3 is expected to drive sales in the United States, following its success in China. With its ongoing dedication to technological advancements, Tesla continues to shape the future of electric vehicles.
The Model 3 Sales Performance
The Model 3, introduced in 2017, has had a relatively good year in terms of sales. In the U.S., Tesla sold 220,910 Model 3 cars in the past year, a 4% increase from the previous year’s 211,618 units.
Despite this growth, there has been a noticeable slowdown in the Model 3’s sales trajectory. In 2021, Tesla’s U.S. sales of the Model 3 dipped to 121,877 units, down from 122,700 in 2020 when the Model Y was introduced.
Sales data for electric vehicles (EVs) in the U.S. before 2020 is scarce. Only a meager 1% of total U.S. sales in 2019 and just under 2% in 2020 constituted of battery electric vehicle sales. However, in 2023, this figure surged significantly to almost 8% of total sales.
Globally, Tesla sold approximately 145,000 Model 3s in 2018, its first full year of sales. The following year, in 2019, the number rose to 312,650 units. In 2020, Tesla achieved impressive sales figures by selling a combined total of 442,511 Model Y and Model 3 vehicles worldwide.
As Tesla does not disclose specific sales data based on model type or region, investors often rely on reliable third-party sources such as Cox Automotive for this information.
In early trading, Tesla’s stock experienced a minor decline of 0.2%, which may result in the shares ending the day with a loss for the eighth time in nine days. On the other hand, the S&P 500 and Nasdaq Composite both saw modest gains of 0.2% and 0.4%, respectively.
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