Tesla (TSLA) is launching a restyled Model 3 electric sedan with a longer driving range in China to boost its slumping sales in the nation of 1.4 billion people.
The revised Model 3 marks the first time that the automaker, led by Elon Musk, has launched a new electric vehicle model in China ahead of the U.S.
The new Model 3 is being built at Tesla’s Shanghai assembly plant and comes with a starting price that is 12% higher than the previous base model in China.
The newest Model 3 will be exported from China to other markets in Asia, Europe and the Middle East.
The new Model 3 is Tesla’s first change to its mass-market vehicle line-up since it launched the Model Y in 2020.
Tesla plans to debut the latest Model 3 at a trade show in Beijing on September 2 and has said that new features include a rear display for back-seat passengers and a longer driving range.
Specifically, the company said the driving range on the new Model 3 has been increased by about 9% to 606 km on a single battery charge.
Tesla said it has started taking orders and would begin deliveries of the revamped Model 3 in China in the fourth quarter of this year.
The company has not yet announced a launch date for the new Model 3 in the U.S. market.
In announcing the new Model 3, Tesla also said it is cutting the prices for its premium Model S and Model X electric vehicles by 14% to 21% in both China and the U.S., its two biggest markets.
Tesla has been lowering prices and offering discount incentives on its vehicles throughout this year as it tries to boost declining sales.
The stock of Tesla has increased 139% so far this year to trade at $258.08 U.S. per share.