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Tesla just launched a new souped-up Model 3 as it battles slumping sales

Kelsey Vlamis   

Tesla just launched a new souped-up Model 3 as it battles slumping sales
Thelife2 min read
  • Tesla unveiled an upgraded version of its Model 3 Performance sedan on Tuesday.
  • Tesla said the new Model 3 has more power, reduced energy consumption, and improved handling.
Tesla announced a new version of its Model 3 sedan on Tuesday as the electric vehicle maker faces a decline in sales.

The upgraded Model 3 Performance, which starts at $52,990, can go from zero to 60 mph in 29 seconds and has a top speed of 163 mph, according to Tesla.

Tesla said the vehicle has more power with less energy consumption compared to the previous Model 3 Performance version. The company said it also has a new adaptive damping system that adjusts to inputs from the driver and the road in real time for better handling, among other changes.

The announcement came just before Tesla reported its quarterly earnings on Tuesday and as demand for electric vehicles, including Tesla's, has been declining.

Tesla's first-quarter earnings report revealed the company fell short of its profit and revenue estimates, but was up on gross margin. Tesla also previewed its upcoming ride-hailing service and said it plans to move up the production timeline for cheaper electric vehicles.

Tesla sold about 386,800 cars in the first quarter of 2024, about 20% less than the last quarter of 2023. The figure fell far short of Wall Street's expectations and marked the first year-over-year decline in sales for Tesla since 2020.

Shortly after the disappointing quarterlysales report, Tesla laid off more than 10% of its entire workforce earlier this month, with CEO Elon Musk citing a "duplication of roles" that occurred during the company's rapid growth.

The company issued another round of price cuts on its vehicles on Monday, with Tesla's stock down 42% year-to-date at market close on Tuesday.

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