Tesla recently unveiled an updated version of its Model 3 Performance sedan on Tuesday, which features more power, reduced energy consumption, and enhanced handling. This announcement comes amidst challenges for the company, including a decline in sales, layoffs, and a drop in its stock prices.
The upgraded Model 3 Performance is priced at $52,990 and can accelerate from zero to 60 mph in just 29 seconds. It also achieves a top speed of 163 mph while offering more power with lower energy consumption compared to its predecessor. A new adaptive damping system has been added that adjusts to driver inputs and road conditions in real time for improved handling.
Tesla’s release of the new model comes ahead of its quarterly earnings report, where it fell short of profit and revenue estimates but showed growth in its gross margin. The company also announced plans to advance its production timeline for more affordable electric vehicles and previewed a future ride-hailing service.
In the first quarter of 2024, Tesla sold approximately 386,800 cars, a decrease of 20% from the previous quarter. This marked Tesla’s first year-over-year sales decline since 2020. Following the disappointing sales report, Tesla conducted layoffs of over 10% of its workforce due to role duplication from its rapid expansion. To counteract these challenges, Tesla announced price cuts on its vehicles and is exploring new strategies to boost demand. As of Tuesday’s market close, Tesla’s stock was down by 42% year-to-date.
