Tesla Launches New Souped-up Model 3 As It Battles Slumping Sales

• Tesla unveiled an upgraded version of its Model 3 Performance sedan on Tuesday.
• Tesla said the new Model 3 has more power, lower energy consumption and improved handling.
• The announcement follows declining sales, layoffs and a drop in Tesla shares.

Tesla announced a new version of its Model 3 sedan on Tuesday as the electric vehicle maker faces declining 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 version of the Model 3 Performance. The company said it also has a new adaptive damping system that adapts to driver and road inputs in real time for better handling, among other changes.

The announcement came just before Tesla reported quarterly results on Tuesday and as demand for electric vehicles, including Tesla’s, was declining.

Tesla’s first-quarter earnings report found that the company missed its profit and revenue estimates, but its gross margin was up. Tesla also previewed its upcoming ride-hailing service and announced plans to accelerate the production timeline for cheaper electric vehicles.

Tesla sold about 386,800 cars in the first quarter of 2024, about 20% fewer than in the final quarter of 2023. This figure is well below Wall Street expectations and marks the first year-long sales decline in the world. other for Tesla since 2020.

Shortly after the disappointing quarter According to the sales report, Tesla laid off more than 10% of its entire workforce earlier this month, with CEO Elon Musk citing “duplication of roles” that occurred during the company’s rapid growth.

The company announced another round of price cuts on its vehicles on Monday, with Tesla’s stock having fallen 42% year to date as of Tuesday’s market close.