Tesla Releases Enhanced Model 3 in Effort to Boost Declining Sales

Tesla unveiled an updated version of its Model 3 Performance sedan on Tuesday, featuring more power, reduced energy consumption, and enhanced handling. This announcement comes as Tesla has been experiencing a decline in sales, layoffs, and a drop in its stock prices.

The upgraded Model 3 Performance, starting at $52,990, can accelerate from zero to 60 mph in 29 seconds and achieve a top speed of 163 mph, according to Tesla. The new version offers more power with lower energy consumption compared to its predecessor. It also includes a new adaptive damping system that adjusts to driver inputs and road conditions in real time for improved handling.

The release of the new model precedes Tesla’s quarterly earnings report, where it fell short of profit and revenue estimates but showed growth in its gross margin. The company also mentioned plans to advance its production timeline for more affordable electric vehicles and previewed a future ride-hailing service.

In the first quarter of 2024, Tesla sold approximately 386,800 cars, a 20% decrease from the previous quarter. This shortfall, which missed Wall Street expectations, marked Tesla’s first year-over-year sales decline since 2020. Following the disappointing sales report, Tesla conducted layoffs of over 10% of its workforce due to role duplication from its rapid expansion.

To counteract sales declines, Tesla announced price cuts on its vehicles and is exploring new strategies to boost demand. As of Tuesday’s market close, Tesla’s stock was down 42% year-to-date.