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âI really want the Model 3 to be different, not just a smaller Model S,â said Musk. The Model 3 will be 20 percent smaller than the Model S. Musk was speaking at the Automotive News World Congress in January 2015.n other words, Tesla could offer a 200-mile version of the car with minimal features, to make good on its cost-range promises, while selling the vast majority of Model 3 cars at higher price points (and profit margins).