Tesla has reduced the price of the Model 3 in China and at the same time bumped the range as it introduces cobalt-free lithium iron phosphate (LFP) batteries in its standard range Model 3s.
As we have previously reported, Tesla has been planning to update its made-in-China Model 3 vehicles with lithium iron phosphate (LFP) batteries from Chinese battery maker CATL.
CEO Elon Musk recently mentioned that he believes the energy density of LFP batteries have improved enough that it now makes sense to use the cheaper and cobalt-free batteries in its lower-end vehicles.
Furthermore, the use of LFP batteries also free up more battery supply of lithium ion chemistry cells for Tesla’s other vehicle programs.
After obtaining authorization to build Model 3 with LFP batteries in China earlier this summer, we now learn that Tesla has made the switch and updated its Model 3 lineup in China:
Tesla updated its online Model 3 configurator with the following new prices after incentives:
- Model 3 Standard Range Plus: now ¥ 249,900 down from ¥ 271,550
- Model 3 Long Range RWD: now ¥ 309,900 down from ¥ 344,050
It brings the price of the Model 3 Standard Range Plus, which is the one now equipped with LFP batteries, to now the equivalent of ~$37,000 USD, which is cheaper than what a Model 3 in the US now costs depending on local state incentives.
Interestingly, the version of the vehicle is also an official range bump from 445 km to 468 km (290 miles).
As we previously reported, Model 3 in China, and eventually in the US, is expected to get several updated features including a new heat pump, chrome delete, and more.
Based on the configurator, Model 3 isn’t coming out of the factory with a chrome delete yet.
As for the internal changes, it’s unclear whether the vehicles are now equipped with octovalve heat pump and other features that are not visible.
We will update as we get more information.
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