Tesla has recently revealed a new update to the Model 3 Standard Range Rear-Wheel Drive (RWD) variant in China which carries significant range improvements and a price increase. This move comes shortly after Tesla’s launch of the refreshed Model Y in China, which features design updates and performance improvements.
Tesla Increases Range of Model 3 SR RWD
Range Boost: 28 km (17.4 mi) Added
There has been a significant boost in the range capability of Model 3 Standard Range RWD. Previously it was 606 km (377 miles) when rated under China’s CLTC testing standard, which has now been increased to an impressive 634 km (394 miles). This 28 km (17.4 miles) improvement addresses some consumers’ desires for more range in km for comfort and reliability purposes.
It is possible to attribute this range increase to an improved battery pack which will explain the range increase. Tesla has been quiet on this but by using an updated Model Y Standard Range as a reference, industry gossip is that it could now have the same 62 kWh battery pack. The 62.5 kWh lithium iron phosphate (LFP) battery supplied by CATL, replaced the previous 60 kWh pack.
This battery upgrade will improve this range and help Tesla seek economies of scale by having the battery cells identical across models, hence cutting costs in the future.
The new Model Y Standard Range 62 kWh battery is reported to bring better energy density and efficiency, which promises the range shifts observed above.
It stands as another chapter in Tesla’s gradual development of battery tech optimization. It also shows Tesla’s flexibility in meeting the customer demands of better battery performance making their cars some of the best in the EV market.
Price Adjustment: ¥3,600 (~$490)
With the enhanced range comes a slight price increase. Tesla has adjusted the pricing of the Model 3 Standard Range RWD for China by ¥3,600, making it ¥235,500 (~$32,120). The price difference is quite small but accurately reflects Tesla’s desire to maintain the cost of the new battery technology and the additional value that comes with the longer range.
This change puts the Model 3 now at a strategic point in the Chinese EV market that has car manufacturers fighting for market space. But still, Tesla is offering its cars at affordable prices and people all around the world can buy Tesla cars, with the newest technological solutions, and with the added advantage of having a longer range.
Tesla’s Competitive Strategy in China
China is still one of the primary markets for Tesla, which contributes a large percentage to the company’s revenue. While China now has a fair share vested in Tesla, it is still noteworthy that domestic firms like BYD, NIO, XPeng, and a newcomer Xiaomi are providing fierce competition to Tesla vehicles.
From expanding the Model 3 range, but still making a relatively small price cut, Tesla is strengthening the brand’s positioning as a luxury affordable in China. The change will be pleasing to middle-class consumers who seek quality and long-range electric cars with next-generation features.
Conclusion
The additional changes that Tesla has made to the Model 3 Standard Range RWD in China show the company’s capacity to evolve in a competitive market. With an extended range of 634 km (394 miles, or 17 percent more than before) for only ¥3,600 (~$490) additional cost; and possible battery improvements; Tesla continues to set the benchmark for electric vehicles.
These changes should therefore help to increase demand for the Model 3 among Chinese consumers and solidify Tesla’s dominance of the leading market for electric cars. Perhaps the main area for the development of Tesla in the future will remain an ability not only to come up with something new but to offer it to consumers at a reasonable price.
