The Under $35K Tesla Alternative
Hyundai is preparing its most compelling Tesla Model 3 challenger yet. While details, like what it looks like, remain largely under wraps, what we do know has us buzzing about the upcoming Hyundai Ioniq 3. The smallest Ioniq is a compact electric car that could bring premium EV technology to the under-$35,000 price point.
The new model is expected to ride on Hyundai's E-GMP platform, which underpins cars like the Ioniq 6 sedan pictured here, as well as Kia's electric car lineup. The cheaper Ioniq 3 will likely scale down the platform’s 800V fast-charging batteries, like on the Kia EV3 subcompact offered elsewhere. According to Top Gear, it could be offered with a similar base 58.3 kWh battery and long-range 81.4 kWh battery, good for between 270 and 380 miles.
Why the Ioniq 3 Could Finally Beat Tesla at Its Own Game
Based on Hyundai's current EV lineup, the Ioniq 3 will slot in below the Ioniq 6 sedan and Ioniq 5 crossover, targeting the crucial compact premium segment where the Tesla Model 3 currently dominates. Unlike budget-focused models like the Kona Electric, the Ioniq 3 is based on Hyundai's dedicated EV platform. The key advantages would be ultra-fast charging, space efficiency, and all the sophistication that comes with a thoroughly modern platform. It will run Hyundai's Pleos OS, allowing software-defined vehicle (SDV) functionality. This means features and upgrades can be unlocked over the life of the vehicle, giving owners more options to spec their cars even after purchase.
While official specifications remain unconfirmed, we expect the Ioniq 3 to offer around 270-380 miles of range with a front-wheel drive configuration. Power output could mirror Hyundai/Kia’s approach with other premium E-GMP vehicles, likely starting around 201 horsepower for base models. The real game-changer would be pricing. If Hyundai can deliver E-GMP technology in a package starting under $35,000, it would significantly undercut Tesla's current Model 3 pricing. We’ll know more soon, with the Ioniq 3’s global reveal slated for September.
The Ioniq 3 Has Stiff Competition
In today's affordable premium EV market, the Tesla Model 3 starts around $42,500, while rivals like Hyundai’s Ioniq 6 are in the same ballpark. The Ioniq 3 will deliver E-GMP's premium technology at a more accessible entry point, just in a smaller package. For that price point to be met, North American production will be crucial to avoid the burden of tariffs and to qualify for Federal tax credits. Hyundai’s Georgia plant is at capacity at the moment, but a potential money-spinner for the company should be able to find space on the production line.
With Hyundai's excellent track record for value-for-money vehicles, the Ioniq 3 could finally give Tesla some serious competition in the compact EV segment. If Hyundai can nail the pricing and range, they might just have their Model 3 killer.
This story was originally reported by Autoblog on Aug 25, 2025, where it first appeared in the News section. Add Autoblog as a Preferred Source by clicking here.
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