Tesla cuts inventory Model 3 prices as Elon Musk preps to preview new Highland version in China
Tesla is upping the discount it gives on Model 3 cars it has in stock twofold, from US$1,300 it previously gave, to US$2,680 now. A few inventory Model Y vehicles also saw modest reductions, but the biggest price cuts came to the high-end Model S and Model X versions at up to US$6,300 off.
The significant Model 3 price discounts may be geared to clean up inventory as Tesla is preparing to release the rumored Highland refresh with new design and FSD Hardware 4.0 kit on board. With fierce local competition from the likes of BYD, NIO, or XPeng, Tesla is looking to introduce a mid-cycle refresh of the Model 3 there as soon as possible.
According to sources from the Shanghai Gigafactory that Elon Musk is scheduled to visit tomorrow, that's when he will also show the new Model 3 Highland refresh. It is not clear yet if Tesla will announce the new Model 3 Highland on June 2 for the global public, or if it will be previewed for the China market only, but tomorrow Elon Musk may offer the first official look at the new 2023 Model 3.
As has become customary, it may then wait until later in the year to actually launch it in the US, so the current inventory Model 3 price reductions here could be a mere coincidence as Elon Musk is on record saying that Tesla adjusts its demand-supply pricing ratio almost daily.
The new Model 3 Highland will reportedly be longer, have more aggressive-looking headlights and exterior design, as well as more streamlined interior. It will also come with the extra cameras and sensors, as well as the new self-driving computer that are collectively known as FSD Hardware 4.0. Tesla is also gunning for a significant production cost savings with the Highland refresh which could translate to lower retail tags as well, but the new Model 3 prices are unlikely to be revealed tomorrow.