Tesla's lower-priced vehicle is expected to be a smaller version of the Model Y
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Tesla is gearing up for a significant production expansion, focusing on their new low-priced models, with a planned annual production capacity of 4 million vehicles, according to Chinese media outlet 36 Krypton. The move is part of Tesla's broader goal of reaching annual sales of 20 million vehicles.
Industry insiders have revealed that this lower-priced model will be a compact version of the Model Y. Tesla is devising an ambitious production capacity plan, with the North American Gigafactory slated to produce 2 million vehicles, while the Berlin factory in Germany and the Lingang factory in Shanghai will each handle 1 million vehicles.
Budget Model Y to Drive Growth
The long-rumored low-priced Tesla model was first mentioned by CEO Elon Musk during the 2020 Battery Day. The model, sometimes referred to as "Model Q" or "Model 2," is expected to be a self-driving electric vehicle priced around $25,000. Tesla aims to halve production costs compared to the current Model 3 or Model Y, resulting in a more affordable starting price of approximately 150,000 yuan ($23,700).
Lower prices have proven effective in stimulating the market, as demonstrated by the significant sales increase following the Model 3 price drop earlier this year. A Tesla vehicle priced at 150,000 yuan could create another sales surge and help the company compete with major automakers like Volkswagen and Toyota.
Factories Worldwide Prepare for Production Boost
Tesla's plans have become more evident since this year's Investor Day, during which the company shared details about its Monterrey factory in Mexico. Covering an area of nearly 4,200 acres, the factory is significantly larger than the Texas and Shanghai facilities. In addition, the Berlin Gigafactory is seeking permission to double its annual production capacity from 500,000 to 1 million vehicles.
The Monterrey factory in Mexico will play a crucial role in realizing Tesla's ambitious production plan. The factory will implement a "Lego" manufacturing method to reduce production costs for the Model Y by 50%. However, sources suggest that mass production of this affordable model is still at least a year away.
Industry insiders believe that Tesla's efforts to lower the price of smart electric vehicles will not only allow the company to gain a larger market share but also contribute to the maturity of the industrial chain. This move is expected to bring significant changes to the smart electric vehicle industry as Tesla accelerates its plans surrounding low-priced models in pursuit of its 2030 sales goals.
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Tesla has finally launched a tow package for the refreshed 2024+ Model 3 in North America. While Tesla offered the tow package in the European and Asia-Pacific markets, this is the first time it has been made available in North America.
Until today, owners have had to use third-party hitch options, which do not support Tesla Tow Mode support or other features and can void your warranty.
Tow Package
The new package includes a high-strength steel tow bar, with the standard 2” receiver and 7-pin connector. As the package enables Tow Mode, the full trailer harness is also part of the installation.
As per Tesla’s specifications, this hitch supports towing up to 2,200 lbs (998kg), which is lower than the Model Y, Model S, and Model X, whose hitch supports up to 3,500 lbs (1,587 kg). You’ll need a 2” hitch and a ball of your choice to get towing with this new receiver, which neatly tucks away underneath a panel that’s accessible via two plastic bolts, similar to the rest of Tesla’s lineup.
The tow package neatly tucks away when not in use.
Not a Tesla App
You can purchase the Model 3 Tow Package for $1,300 USD or $1765 CAD on the Tesla store or through your Tesla app. Installation is included in the price, and the parts are shipped directly to your local Tesla service center, where they’ll be installed. However, delivery can take one to two weeks.
As a note, this package is only compatible with the 2024+ Model 3 RWD and AWD. The Performance model is not compatible, likely due to the larger rear motor's size.
Installation
The total package price also includes shipping to your local Tesla Service Center. In addition, Tesla will enable the config changes that will allow you to use Tow Mode. The entire process takes between 2 to 4 hours, depending on the scope of work, as some Model 3s will require additional harness wiring.
It’s nice to see Tesla finally adding this much-missed feature to the North American Model 3, as many customers have had to use third-party solutions up to this point. Now, anyone can tow light loads with the refreshed Model 3 while also keeping their vehicle under warranty and taking advantage of Tow Mode.
Tesla has partnered with XPEL, one of the leading manufacturers of automotive tints, for an OEM-approved window tint. Previously, Tesla did not approve window tints on its vehicles and had even denied warranty claims for window issues if the windows were tinted.
Over the past year, Tesla Service has stopped denying warranty claims for cracked windows caused by excessive motor force, factory misalignments, or other minor issues — even when window tints are applied.
XPEL / Tesla Partnership
With this partnership, Tesla owners can find window tints directly through the Tesla app, just like they’d find any other Tesla accessory. The difference is that the purchase is completed on XPEL’s website instead of through the Tesla app.
Tesla is essentially promoting the service and presumably making it an approved product. However, the Tesla owner also benefits from having a better warranty instead of just going through XPEL directly.
XPEL offers two official tints for all Tesla vehicles, including the Cybertruck - its Prime XR+ and Prime XR lines. The best part is that XPEL and Tesla’s combined warranty covers the cost of reinstallation if the glass is damaged under Tesla’s vehicle warranty, which means you won’t have to pay anything additional to get your tint replaced.
You can check out the official specifications of the two tint options below.
Prime XR +
Prime XR
Infrared Heat Rejection
Up to 96%
Up to 85%
UV Protection
Blocks 99% of Harmful UV Rays
Blocks 99% of Harmful UV Rays
Glare Reduction
Up to 95% Glare Reduction
Up to 95% Glare Reduction
Technology
Dual-Layer Nano Ceramic
Single-Layer Nano Ceramic
Vehicle tints, like the ones XPEL offers, have numerous advantages. They reduce cabin heat, block UV rays, minimize glare from external light sources, and increase privacy.
The order is placed through XPEL’s website, and then you will be referred to your local installer. They will conduct the installation, and then you’re set and ready to go - no payment is needed from the installer. The process takes between 1-2 business days, including time for the tint to fully set on the glass. This reduces the chance of the window tint peeling prematurely from your frameless window, which automatically lowers and raises when you open and close the door.
For now, this service is only available in the United States, and you can get referred to an XPEL official installer through the button on XPEL’s Partner website here. You can select the shade/tint percentage of your window film on the installation date.
Of note, windshield tinting is not available through the partnership program, but XPEL advises that your local installer can provide you with an additional quote on the day of installation.
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