Tesla launched the newest iteration of its Model 3 Performance Tuesday, just in time for what promises to be a tense Q1 earning call. First, the car; the automaker claims it’s the most powerful electric sedan it has ever produced, boasting an advertised 163 mph top speed and a 2.9 second 0-to-60 mph time. Tesla credits its latest drive unit for the significant gains compared to the previous Model 3 Performance. Tesla aims for the new sedan to be “a perfect, high-performance daily driver.” The Model 3 Performance will start at $52,990 before incentives. Tesla was certainly incentivized to launch the sedan today ahead of what will likely be a disastrous Q1 earnings call.
Tesla claims the new Performance 4DU drive unit produces 22 percent more continuous power, 32 percent more peak power, and 16 percent more peak torque delivery compared to its predecessor. This added power is paired with a two percent reduction in energy consumption.
It isn’t all straight-line speed, as the sedan features all-new active damping and an updated track mode. The Model 3 Performance’s active damping system has three preset modes: Standard, Sport, and Track. Depending on which setting is selected, the active suspension will prioritize ride comfort or body control. The sedan will also feature Track Mode V3, a unified system integrating “motor controls, suspension controls, powertrain cooling, and Tesla’s Vehicle Dynamics Controller.” Track Mode UI has also been revised to give drivers more data.
However, nothing can dampen CEO Elon Musk’s mood like a terrible earnings call. Musk was nearly brought to tears during the Q3 2023 earnings call. Today’s Q1 2024 is expected to be rough. The company’s stock price fell by 40 percent since the start of the year. Tesla is expected to announce its first decline in sales since 2020.
During the Q3 2023 call, Musk focused on the Cybertruck rather than addressing investors’ concerns. Today’s launch of the Model 3 Performance feels no different. Don’t get me wrong. The sedan’s new aerodynamic bodywork looks cool and Tesla claims it has cut drag by five percent, but Tesla needs to be clear about its path forward. It can’t just ignore the reports that the long-awaited Model 2 is canceled by stating that employees are lying to the media.