The New Affordable Tesla Model 3 is Here, But It’s Not What You Expect

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By Car Brand Experts


  • A new budget-friendly Tesla Model 3 has launched in Mexico featuring cloth seats and fewer amenities.
  • This version of the Model 3 lacks several enhancements from last year’s ‘Highland’ update.
  • It is roughly $4,000 less expensive than the entry-level Model 3 in the U.S. Could a U.S. release be on the horizon?

As the demand for affordable electric vehicles continues to grow, the leading electric car manufacturer, which fluctuates with the performance of China’s BYD, has yet to meet that need. While upcoming competitively priced models from companies like General Motors, Kia, Stellantis, and Ford are imminent, Tesla CEO Elon Musk’s commitment to producing budget-friendly models remains vague, primarily focusing instead on AI and autonomous driving advancements.

However, during a July earnings call, Musk stated that 2025 will introduce new electric vehicles that will leverage both the next-generation and existing platforms, allowing production on the same assembly lines as current models.

This brings us back to the recent launch of a new Model 3 variant in Mexico. Is this what Musk was hinting at? Or is it merely a more affordable gateway into the Tesla brand for an emerging electric vehicle market?



Tesla Model 3 Cloth Interior

Tesla Model 3 Cloth Interior

Introducing the most affordable Model 3 ever seen in Mexico. Noticed by Not A Tesla App, this variant replaces the vegan leather trim with cloth seats (a first for Tesla), omits the rear-screen display, features ambient interior lighting in white only, and does not offer heated seats or steering wheels. Consequently, it forgoes several updates from the latest “Highland” Model 3 introduced last year.

This model is arguably the most stripped-down Tesla to date, more closely resembling a Toyota Corolla than a luxurious vehicle. While debate persists regarding the Model 3’s classification as a premium car, this new version undoubtedly does not fit that description.



Model 3 Cloth Seats


Model 3 De-Contented Rear

But is this really a negative? Not at all, I would argue. In fact, it stands out as one of the simplest, most stripped-down electric vehicles currently available, yet it still offers a range of 438 km (approximately 272 miles) and can accelerate from 0 to 100 km/h (60 mph) in just over six seconds.

Most notably, it comes at a lower price point. This rear-wheel-drive Model 3, which lacks a specific name, is available for 749,000 pesos, roughly $40,000 in the U.S. at current exchange rates. This marks a reduction of 50,000 pesos compared to the previous Model 3 in Mexico and is 130,000 pesos less than the next more expensive Model 3 variant, the Long Range Dual-Motor All-Wheel-Drive. While Mexico may not be classified as a “developing” market anymore, there is undoubtedly an interest in electric vehicles like this.

The appetite for more affordable electric cars exists globally. So the question remains: might this version come to the U.S.? Does it hint at Tesla’s strategy to introduce more budget-friendly options without needing to design entirely new models? Your guess is as good as mine, as Tesla’s product plans remain quite opaque. However, I believe there would be a significant market for such a model in the U.S., especially considering their popularity among ride-share drivers.

What do you think about a Model 3 with cloth seats: yes or no? Share your thoughts in the comments.

Contact the author: patrick.george@insideevs.com

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