Tesla has unveiled an upgraded version of its Model 3 Performance sedan. The new model boasts improved performance, energy efficiency and handling capabilities. This announcement comes at a time when the company is facing declining sales, layoffs and a drop in its stock.
The upgraded Model 3 Performance starts at $52,990 and features a new adaptive damping system that adjusts to inputs from the driver and road in real-time, improving the vehicle’s handling. Tesla claims that the new model has more power with less energy consumption compared to its predecessor, making it a high-performing driving experience for customers.
Despite these updates, Tesla’s first-quarter sales were disappointing with a 20% decline compared to the previous quarter. This marked the first year-over-year sales decline for Tesla since 2020. Following the sales report, Tesla implemented layoffs affecting over 10% of its workforce to address organizational redundancies. To further stimulate demand, Tesla issued price cuts on its vehicles but these efforts have not been enough to boost investor confidence as Tesla’s stock was down 42% year-to-date at market close on Tuesday.
Tesla also announced plans for a ride-hailing service and shifting production timelines for cheaper electric vehicles during their quarterly earnings report which showed mixed results for the company. While Tesla fell short of profit and revenue estimates, it showed an improvement in gross margin. Despite these developments, challenges remain amidst a rapidly changing electric vehicle market and stiff competition for the industry leader in EV technology.