​Tesla has dropped the starting price of its Model 3 by £3,000, with the facelifted version of the cheapest rear-drive variant costing £39,990. The Long Range costs £10,000 more. The Performance is currently not available to order.

This makes it cheaper than the entry-level versions of cars like the new Peugeot e308 and even some Corsa Electric models.

Despite the cost cut, the new Model 3 has an improved interior, better refinement and more range.

The smoother styling more closely resembles the Model S but also reduces aerodynamic drag. The fog lights are now incorporated into headlight units, while the tail lamps are integrated into the bootlid to improve fit.

New wheel designs are also optimised for aerodynamics. 

As a result of these changes and new, more efficient tyres, the range is expected to improve by between 5 and 8%, taking the Long Range model’s total from 394 to 421 miles – making it one of the longest of any car available. The entry-level rear-wheel-drive car now has an official range of 344 miles, up from 308. 

In addition to making the Model 3 more efficient, the slippery design also means the car is quieter. The cabin also has new 360˚ acoustic glass, improved suspension bushings, seals and sound-dampening materials to improve refinement. Ventilated front seats and heated seats all-round are now integrated into automatic climate controls.

There are also two new colours, called Ultra Red and Stealth Grey. Orders placed now on the Tesla website will arrive in January.

New interior features higher quality materials and LED lighting