Tesla to debut face-lifted Model 3 at Munich auto show

Tesla will display the upgraded Model 3 -- the first major revision since the midsize EV was first revealed in 2016 -- at the 2023 Munich auto show.

The face-lifted Model 3 was revealed this week in Oslo, with a more aerodynamic design, a refined interior and slightly improved range. The drivetrain remains the same.

The Model 3 has been on the market in Europe since 2019, and was an immediate hit with buyers. European-market Model 3s are assembled in Tesla’s Shanghai factory, while the automaker’s new German factory builds the Model Y midsize SUV. To date, more than two million Model 3s have been sold worldwide.

Aerodynamic improvements are the main reason for the longer range, Tesla says, and the coefficient of drag has been lowered to 0.219. The rear-drive, single-motor model now has a WLTP range of 513 km, up from 491 km, while the dual-motor, all-wheel-drive version has a range of 629 km, up from 602 km.

The price of the entry-level single motor model is 42,990 euros in Germany, while the long-range version starts at 51,990 euros. Deliveries start in October.

Tesla managers said at the event in Oslo that customers had asked for a more refined experience, especially in the interior.

As a result, details of the revamped Model 3 include new acoustic glazing on the windows to lessen wind noise, an updated central touchscreen, a second, eight-inch screen for rear passengers, a redesigned center console and different interior trims. Steering column levers have been eliminated to streamline the user interface.

Revisions to the body, which has been lengthened by 30 mm to 4270 mm, include a sleeker front fascia. There are two new colors, Stealth Gray and Ultra Red.

While the prices in Europe, where Tesla has discounted heavily this year, are about the same as before, the new Model 3 comes with a 12 percent premium in China. Analysts said the face-lifted Model 3 was needed to keep up with rivals in that market, notably BYD, Nio and Xpeng.

“Tesla has discovered that to win in China’s hyper-competitive EV market, you must race faster than anywhere else in the world,” said Bill Russo, a former Chrysler executive who is now CEO of Automobility Ltd., a Shanghai-based consultancy.

Selling a model that hasn’t been updated in six years in such a market is the automotive equivalent of buying an older iPhone, he said, adding it will be “very challenging” to sustain a higher price point for the new version and still sell significant volumes.

“If you are not the latest and greatest, you are left with price discounts as your only weapon,” he said.

The Model 3 was an immediate hit in Europe when it was launched in early 2019, topping the midsize premium segment in its first month of sales. In 2020 it ranked fourth overall in the segment, behind only Mercedes, BMW and Audi, despite not offering a station wagon variant. And in October 2021, the Model 3 topped all models in Europe, the first EV to do so.

However, the pace of Model 3 deliveries was uneven, partly because the cars had to be shipped from China, and partly because of Tesla’s tendency to push deliveries to the end of each quarter.

Sales of the Model 3 have tailed off in Europe following the start of production of the Model Y. The Model 3 was ranked second in the midsize premium segment in the first half of 2023 with 38,843 sales, according to figures from Dataforce. The segment was led by the BMW 3 Series with 39,605 sales.

Tesla CEO Elon Musk first unveiled the Model 3 to enormous fanfare in March 2016, but famously faced several months of “production hell” as the company struggled to ramp up production in 2018. 

The new model is live on all order sites in China, Europe, the Middle East and Australia, though not in the U.S. 

Automobilwoche and Bloomberg contributed to this report