Tesla finally unveiled its long-awaited updated Model 3 EV sedan on sale in China overnight, following months of buzz. Tesla stock is near a buy point.
The upgraded Model 3 could help buoy sales and profit margins for the EV giant. The exterior got a modest, sportier look with the interior also having a relatively modest refresh.
The new Model 3 is getting a 9% battery range boost and faster acceleration. The price, unexpectedly, will be 12% higher.
Notably, the upgraded sedan reportedly has much-lower production costs.
The Tesla Shanghai plant has been making the new Model 3, known as "Project Highland," for the past few weeks, with output still ramping up. Some Tesla showrooms had been taking reservations for the Model 3.
Deliveries will start in the fourth quarter.
Tesla will presumably export the new Model 3 to Europe and other key markets in the coming months as well. Eventually, Tesla's original Fremont, Calif.-based plant will make the "Highland" for the U.S. market.
Tesla Model 3 Price Raised
The upgraded Model 3 will start at RMB 259,900 ($35,810.00) from the current RMB 231,900 ($31,950). That was a surprise. The speculation was that the upgraded Model 3 would see a big price cut, or at least keep the price steady.
Higher prices should boost profitability, especially if production costs are lower.
Tesla slashed China prices in October 2022 and again in January, but since then they've been relatively steady.
Also on Friday, Tesla cut Model S and X prices in China and South Korea.
Tesla Stock
Of course, what investors want to know: Will this boost Model 3 sales — and Tesla stock?
Tesla stock rose 0.5% in Thursday's trading to 258.08, just above the 50-day line. Investors could use Thursday's high of 261.18 as an early entry? TSLA stock has a 299.29 official buy point, according to MarketSmith analysis
Amid the buzz for the Model 3 upgrade and the looming Cybertruck, there has been some negative news. Tesla appears to be stepping up North America inventory discounts on the Model 3 and Model Y, putting further pressure on profit margins. Also, federal prosecutors reportedly are probing Tesla for misuse of funds as well as inflating battery ranges.
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