Tesla is experimenting in Mexico with a cheaper, stripped-down version of the Model 3. The cost-cutting measures in equipment could boost sales, but also raise questions. Is this the harbinger of a new entry-level model? Nadine Dressler
Tesla appears to be testing new ways to make its current entry-level model, the Model 3, more attractive to price-conscious buyers. How Teslarati.com reported that the electric car manufacturer has introduced a slimmed-down version of the Model 3 RWD (Rear Wheel Drive) in Mexico. This version comes with a textile interior instead of the usual vegan leather. The cost-cutting measures go beyond the upholstery. This version also lacks heated and cooled seats and a heated steering wheel. The acoustic glass is only installed on the front windows and the screen for the rear passengers has been removed. The ambient lighting has also been limited to white instead of being color-customizable as before.
It is unclear whether Tesla has installed the same components and only blocked them via software, or whether other parts are actually used.
These savings are reflected in the price. The new basic Model 3 now costs 749,000 pesos in Mexico (about 37,000 euros), which corresponds to a price reduction of around 50,000 pesos or 2,450 euros. This brings Tesla closer to a mark that the company had long aimed for as a target for a mass-market electric car.
However, reactions on social media have been mixed, with some users welcoming the lower price and arguing that the lack of features is bearable in Mexico’s climate.
Others are critical of the cost-cutting measures and point to competing models that offer more features despite lower prices. One example is the Chevrolet Bolt EUV, which is cheaper but still has extras such as ventilated and heated seats.
It remains to be seen whether Tesla will introduce this cheaper variant in other markets. The strategy could be part of an attempt to increase sales. Tesla CEO Elon Musk is said to have scrapped plans for a 20,000 euro model, but that does not mean that the vehicles could become fundamentally cheaper. Infographic Electromobility: The USA is Tesla’s most important sales market Critics see the slimmed down version of the Model 3 as a sign that Tesla is coming under pressure.
The introduction of this cheaper variant also raises questions about Tesla’s long-term strategy. While the difference to the new entry-level price in Mexico does not seem dramatic at first glance, it could give Tesla access to a much larger group of buyers. At the same time, the company must be careful not to be perceived as a cheap brand.
The question for potential buyers now is whether the savings justify the price reduction. While some features such as heated seats may be dispensable in warmer regions, other limitations such as the lack of a rear screen could be a real disadvantage. The reaction of the market and competitors to this new strategy could be crucial for Tesla’s future positioning in the increasingly competitive electric car market.
What do you think of Tesla’s strategy of offering a cheaper variant of the Model 3? Would you accept compromises in terms of equipment in order to achieve a lower price?
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.
