Tesla now offers a Model 3 with almost a 400 mile range in the UK
Tesla
Tesla has introduced a new Model 3 variant designed exclusively for the UK business sector. The latest addition to Tesla's lineup features a Long Range battery pack and a single rear motor. This new offering comes as Tesla aims to accelerate the electrification of Europe's business-to-business fleet.
Comparing the New Variant to Current Model 3 Versions
Currently, Tesla has three Model 3 versions: Standard Range RWD, Long Range All-Wheel Drive, and Performance AWD. However, this new addition is tailored specifically to cater to the commercial market.
According to Electrek, Karen Bowen, senior key account manager at Tesla, revealed that the Model 3 Long Range Rear-Wheel Drive offers a segment-leading range of 394 miles (WLTP) and the highest charging convenience. The vehicle is priced at £46,990, which positions it £4,000 above the base Standard Range and £4,000 below the regular Long Range AWD.
Longest-Range Model 3 Yet, But Limited Availability
The new Model 3 variant has an impressive 394-mile WLTP range, making it Tesla's longest-range Model 3 yet. However, this model will only be accessible through Tesla's business-to-business division. Bowen stated that orders could be placed via B2B channels, with deliveries expected to begin in June. The new Model 3 variant will only be available in the UK.
Attractive Incentives for UK Businesses
This strategic move by Tesla is likely due to the strong incentives offered to businesses in the UK for purchasing electric vehicles. These incentives include a company car tax cap of 2% rather than the standard 20% to 37%, depending on the vehicle, as well as a 100% year-one deduction for the cost of the vehicle, among other benefits. These incentives have prompted many people to buy electric vehicles through businesses in the UK.
Rumors of a Longer-Range Model for China
While this Model 3 variant is currently exclusive to the UK, it is worth noting that Tesla has also been reported to be close to launching a longer-range model for the Chinese market. This new variant is rumored to have a range of approximately 404 miles, according to sources familiar with the matter. It remains to be seen if Tesla will introduce a similar model in other markets or expand its availability beyond the business fleet division.
Future Implications for Tesla's Market Strategy
Tesla's new Model 3 Long Range Rear-Wheel Drive is an exciting development for the UK business sector, offering an extended range and attractive pricing. It will be interesting to see if Tesla continues to target specific markets with tailored offerings or if this strategy will extend to other regions and market segments.
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In a letter to industry, the National Highway Traffic Safety Administration (NHTSA) has announced that it is overhauling its approvals process for vehicles designed without human controls.
The change addresses a regulatory bottleneck that has slowed down American companies like Tesla from deploying purpose-built Robotaxis, rather than relying on using traditional vehicles with steering wheels and pedals. The policy shift is outlined in a letter posted to the NHTSA’s website, which you can find here.
Reducing Approvals From Years to Months
Under the existing rules today, any vehicle that is built without a steering wheel or brake pedals must receive a special exemption from federal safety standards.
Obtaining exemptions for a particular vehicle was a time-consuming process for both the companies requesting exemptions and the NHTSA. The process was often a black box—nobody knew when an exemption might be granted, and approvals could take years.
The NHTSA, under the new administration’s guidelines for autonomous vehicle development, is now committed to streamlining this process. The agency will be implementing a new, faster approach immediately for receiving exemptions for autonomous vehicles without standard controls. The NHTSA expects decisions on exemption requests to be determined within months rather than years.
Accelerating the Cybercab
This change has massive implications for Tesla, which is banking on the production of the simplified and easy-to-maintain purpose-built Cybercab. The Cybercab is developed from the ground up as an autonomous Robotaxi and will be one of the key beneficiaries of this move by the NHTSA.
Knowing that a final design won't be caught in a multi-year regulatory limbo provides a level of certainty that has been missing. It allows Tesla to confidently plan the manufacturing, development, and deployment processes without worrying whether the project will get stuck in regulatory approvals.
According to the letter, the agency will publish its improved instructions for the streamlined process "shortly." With Tesla already having begun Cybercab pre-production and the goals for its deployment as soon as late 2026, there’s still a lot to be done to make autonomy a part of Tesla’s new sustainable abundance mission statement.
Thanks to Tesla Yoda on X, we have found out that Tesla’s Robotaxi fleet is registered on the Texas Department of Transportation’s public-facing Automated Vehicle Deployment website. This makes the fleet’s movements publicly viewable and trackable, and marks a first for Tesla.
This isn’t just any old FSD test - this is the first officially acknowledged, government-tracked, and sanctioned deployment of a Tesla Model Y operating as a ride-share vehicle. But that’s not all - Texas DOT’s tracker notes that the Tesla does not have a safety driver.
View on the Map
Visitors to the Texas DOT website can filter for “Tesla”, and see, currently, a single active vehicle operating in the Austin Metro area. According to the state’s official data, here’s what we know:
Company: Tesla
Description: Ride-share service
Status in Texas: Testing
Safety Driver: No
The final point is definitely the most interesting here. While Tesla has been testing FSD with safety drivers for some time in Austin and LA for employee-only testing, this is the first time that a vehicle has been officially registered and deployed on public roads without a human behind the wheel for safety.
The fact that there is no safety driver officially shifts the liability from the occupant of the driver’s seat to Tesla, for the first time in a public setting. That’s already pretty significant - we previously dove into how Tesla plans to insure its own vehicles, and potentially owner vehicles in the Robotaxi fleets.
The status currently lists Tesla as “Testing,” confirming that the service isn’t available to the public, but this is expected to change in the coming weeks.
This testing phase is likely part of a short but crucial period that lets Tesla capture data on the safety levels of its current iteration of Unsupervised FSD without a driver supervising. Tesla already stated that they’d be avoiding difficult areas, so this testing can also expose additional areas Tesla may want to avoid, such as school zones or blind driveways.
Tesla will need to prove, both internally and externally, that FSD Unsupervised has the necessary performance to safely navigate the streets without any incidents.
Regulatory Milestone
For years, the concept of a Tesla Robotaxi has been a future promise. Now, it's a present-day reality, albeit in a testing capacity.
Having an official government body list a Tesla as an active, driverless vehicle shows that they’ve been able to clear regulatory hurdles, which Tesla has often pointed to as the issue. It demonstrates a level of confidence from both Tesla and Texas regulators in the system's capabilities.
While it's just a single vehicle for today, we’ll likely see this list slowly expand over time. Alongside being able to track Robotaxi incidents at the City of Austin’s website, we’ll be able to closely watch Tesla’s progress with its first Robotaxi deployments.