The Model 3 is an electric fastback mid-size four-door sedan. The Model 3 Standard Range Plus version delivers an EPA-rated all-electric range of 262 miles (422 km), and the Long Range versions provide 353 miles (568 km). Model 3 carries complete self-driving hardware, with periodic software updates adding functionality.

Limited production of the Model 3 began in mid-2017, with the first production vehicle rolling off the assembly line on July 7, 2017. The official launch and delivery of the first 30 cars took place on July 28.

The Model 3 was marketed as more affordable to more people than some other models. Since early 2020, the Model 3 has been the world's best-selling electric car in history and, in June 2021, became the first electric car to pass the 1 million global sales milestone. The Model 3 has been the world's top-selling plug-in electric car (PEV) for three years running, from 2018 to 2020. It has also been the best-selling PEV in the United States for three consecutive years, 2018 to 2020, the top-selling PEV in Europe in 2019, and the best-selling PEV in China in 2020.

The company plans for the Model 3 are part of a three-step strategy to start with a high-price vehicle and move progressively towards lower-cost cars. At the same time, the battery and electric drivetrain were improved and paid for through the sales of the Roadster, Model S, and Model X vehicles.

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