Prices start at €42,990 for the Rear-Wheel Drive range and €50,990 for Long Range AWD models.
Despite the upgrade, entry-level rear-wheel-drive models cost the same as the outgoing cars, while Long Range versions are up by just €1,000.
The company has already lowered prices in a fierce drive to hold and win more customers in the face of growing competition from rivals.
The “significant” update comes six years after the first car was produced. Since then, more than two million models have been made.
It has refined the body, improved aerodynamics and come up with a new interior. The front is lifted by new headlamps while tail lamps with bright colours and updated styling are integrated into the liftgate.
Tesla says this model has the lowest absolute drag co-efficient (wind resistance) of any Tesla, at 0.219.
The biggest improvements come in the cabin. There are real aluminium inserts (the centre console is now covered with them), there are up-market textiles and seats are now ventilated and heated. They are also integrated into the automatic climate controls.
There is also plenty of storage around the cabin.
There are dual wireless phone chargers, fast-charge laptop capability, one front and two rear USB-C charging ports, each with power up to 65W.
The 15.4-inch centre display is the same size as before, but has more usable screen area.
Rear-seat passengers can access a new eight-inch display with integrated climate control, ventilation, and entertainment. Tesla promises more of the same with over-the-air (OTA) updates.
A first in the Model 3 is customisable ambient lighting wraps around the inside.
The cabin is quietened even further due to 360-degree acoustic glass, improved suspension bushings and sound-dampening materials. That means a 30% lowering of wind noise and 20% less road rumble.
The new audio system has 17 speakers, dual subwoofers and dual amplifiers for Model 3 Long Range and nine speakers, a single subwoofer and amplifier for Model 3 Rear-Wheel Drive.
And you will no longer have to manually unlock your vehicle, power it on or disengage the parking brake – the system does it automatically.
All you have to do is press the brake pedal and swipe up or down on the left-side of the screen to engage drive or reverse. The gear-shifter automatically appears when you press the brake or when driving at low speeds, for quick changes.
As is the case with the latest Model S and X, when you engage Autoshift Out Of Park (Beta) you only have to buckle your seatbelt, close the door and press the brake; the car automatically selects drive or reverse according to your surroundings. The stalks are replaced by steering wheel controls. There are several Tesla-first safety elements, including for side-impact-protection.
Both front door pillars have a blind spot indicator in the upper speaker grille. When your system detects another vehicle in your blind spot area in an adjacent lane, a red light appears in the upper speaker grille.
And, as is now an EU regulation, a chime sounds when the determined speed limit is exceeded. By pressing the speed limit sign on the touch-screen you can mute the speeding chime for the rest of your drive. Of course, the speeding warnings automatically come back when you start your next drive.
With 19-inch optional nova wheels, the Model 3 rear-wheel version can, Tesla claims, cover 513km between charges. The Long Range version stretches to 629km (again, this figure is claimed).
The estimated range on standard 18-inch wheel is 554km for the rear-wheel model and 678km for the long range respectively.
Top speed for both cars is 201km/h, with the rear-wheel-drive capable of sprinting to 100km/h in 6.1 seconds.
That dips to 4.4 seconds in the Long Range.
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