Tesla Slashes Model 3 Costs with Cheaper $35,000 Version, Ditching Key Interior Features in Mexico

Tesla has introduced a more affordable version of its Model 3 in Mexico, stripping down interior features to lower the price to $35,000, marking a strategic move in a competitive market.

Tesla Removes Basic Interior Features

In Mexico, Tesla debuted a rear-wheel-drive Model 3 with cloth seats. It has eliminated several basic interior amenities seen on the base Model 3 in the United States and Canada in an effort to reduce production costs in that country, where the vehicle is quite expensive.

Per Notebookcheck, now you can get a RWD Model 3 in Mexico without features like heated or ventilated seats, a rearview mirror, heated steering wheel, ambient lighting with multiple colors, and what seems like a lid for the cupholders.

Acoustic Glass Now Limited to the Front

The much-touted acoustic glass, which debuted with the Model 3 update, is also now limited to the front ones.

Just with the US variants, this vehicle comes with 9 speakers and 1 amplifier rather than the 17 speakers, 2 amplifiers, and 1 subwoofer seen in the Long Range and Performance versions.

Prices Remain High Despite Cuts

However, even without those features, the base Model 3 starts at $40,290 in Mexico and $38,990 in the US, and that's with ventilated leather seats and all the extras.

Vehicles in Mexico can be quite pricey, and it appears that Tesla is cutting features that aren't relevant to the Mexican market in an effort to lower prices.

Feature Cuts May Be Part of Tesla's Long-Term Plan

In this hot weather, for example, you probably won't need the heated seats or steering wheel. In warmer climates, fabric chairs may also be more comfortable than leather ones. Ventilated seats would have been a nice addition for future Model 3 RWD buyers in Mexico, but white ambient lighting and a little rear screen aren't necessarily dealbreakers either.

We don't yet know if this Model 3's reduction in features is Tesla's strategy for future mass market vehicles or if it's simply a response to regional demand.