Tesla Model 3 freshen offers more luxury, more quirks

The highly anticipated freshen of the 6-year-old Tesla Model 3 brings some badly needed luxury touches to the compact sedan, along with some quirky ergonomic choices and some missed opportunities to appeal to more traditional car buyers.

On the one hand, the pioneering Tesla now offers ventilated seats and a rear infotainment screen on its entry-level vehicle. On the other, it removed the turn-signal stalk on the steering wheel and still doesn't offer an instrument panel. Instead, vehicle information such as speed and battery charge is presented on the center infotainment screen.

"One thing I wish they had changed is where the speedo is," said Mat Watson, chief content officer for U.K. website Carwow. "Much better to have it straight in front of you. And really, this car could absolutely, 100 percent, do with a heads-up display," said Watson, who drove the car last week.

Tesla presented the freshened Model 3 at the Munich auto show Sept. 4 and opened orders in Europe for October delivery. U.S. sales are expected in early January, with production out of the electric vehicle maker's Fremont, Calif., factory, AutoForecast Solutions said.

Tesla has rejected the traditional industry cadence of updating vehicles every three or four years. But the Model 3 has seen its sales growth cool in the past year, despite deep price cuts, and Tesla fans have been clamoring for an update.

"With the growing competition in the EV space, even Tesla has to appreciate the market's desire for regular updates," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.

According to Experian data, new U.S. registrations for the Model 3 rose by 12 percent in the first half of the year to 108,604 compared with the same period last year. While positive, that result paled in comparison with the Model Y crossover, which shares Tesla's compact vehicle platform with the Model 3. Model Y registrations jumped 95 percent in the first half to 201,434.

Tesla reduced prices more deeply on the Model Y than its sedan sibling, likely stealing some Model 3 sales, analysts say. But the Model 3 update means it will have unique features compared with the Model Y until that vehicle is freshened, likely in 2025.

Exterior changes to the Model 3 include a new front fascia and front headlights for a sleeker look, along with new rear lights that are better integrated around the trunk opening. The Tesla name is spelled out on the rear rather than just a logo. Some commentators on social media have suggested the Model 3 now looks more similar to the Model S, Tesla's flagship sedan.

"Tidying up the styling of the very popular model is the best way to get old buyers interested in trading their older models and to get reinvigorated interest from new potential buyers," said Fiorani.

The most important updates introduce premium features that the Model 3 has lacked since its inception, including ambient lighting. The freshened model also has more acoustic glass for a quieter cabin and a revised suspension for a more compliant ride, Tesla said on its website. The original Model 3 was considered sporty but a little harsh by automotive journalists.

The handful of premium improvements are a significant step forward for the entry model, analysts said, since the carryover drivetrain was already one of the best in the business in terms of performance and efficiency. Tesla told journalists in late August that efficiency for the freshened model had improved slightly because of a more aerodynamic body.

"All these changes are pretty subtle," said Robert Llewellyn, founder and joint CEO of the EV website Fully Charged. "These are all things people have asked for, that Tesla owners have said, 'Can you do this, can you do that?' " said Llewellyn, who also drove and reviewed the freshened Model 3 on YouTube. "It's essentially the same car, but better."

The freshened Model 3, which was code-named Highland before its release, is slightly more expensive than the outgoing model in Europe, depending on the country and trim. Local media report about a $1,000 increase.

In China, where the Model 3 is assembled for the local market and for export, the base model price is about 12 percent higher, according to Reuters.

The non-freshened Model 3 starts at $41,880 with shipping in the U.S. That's $6,560 less than last year, thanks to a series of price cuts that started in January. The Model 3 also qualifies for the $7,500 federal tax incentive.

The most unusual change to the freshened Model 3 is the removal of the stalks on both sides of the steering wheel. Tesla had removed them from its higher-end vehicles, the Model S and Model X, as part of their 2021 freshen. The EV maker now brings its theme of extreme minimalism to the Model 3, decreasing functionality in favor of design.

The turn signals are now operated with buttons on the left side of the steering wheel. The button indicating a right turn is above the button for a left turn. On the right side of the steering wheel are buttons to operate the headlights and windshield wipers. The gearshift lever, previously on the right stalk, is now presented digitally on the center infotainment screen.

"Ditching traditional stalks and relocating turn signal operation to a pair of buttons on the steering wheel is a clever approach and an easy way to clean up the front cabin space," said Robby DeGraff, product and consumer insights analyst at AutoPacific.

However, he added, "Tesla needs to be cautious on straying too far from the norm when it comes to bypassing everyday common features."

DeGraff said that, overall, he was a little underwhelmed by the Model 3 freshen.

"I was hoping for just a bit more 'wow' from Tesla," DeGraff said. "In research our AutoPacific team has conducted, there are a lot of features consumers want on their next new vehicle, and the Model 3 is still absent of many of them."

The biggest missed opportunity, DeGraff said, was the failure to include Apple CarPlay and Android Auto, which replicate a user's smartphone features on the vehicle's infotainment screen, including music, podcast and navigation apps. Tesla's overall infotainment software receives high marks, but many consumers simply want to use the features already on their phones.

"It remains puzzling as to why Tesla still doesn't offer Apple CarPlay and Android Auto," DeGraff said. "It's a hot feature wanted by so many vehicle shoppers, including nearly 40 percent of consumers who would consider buying a new Tesla product," according to AutoPacific surveys of future car buyers.