I would like to get an intuition for why $(-)\otimes N$ is right-exact using its universal property involving bilinear maps, not by appealing to higher-level observations such as "left-adjoints preserve colimits". The argument below is the best I could do towards this goal, but clearly it is in need of rigorization (if indeed something along these lines is correct).
I have indicated two spots in the argument below that I would like to ask for detailed explanations of how to rigorize and/or fix.
This is an attempt to re-ask an earlier question of mine, which apparently was easy to misinterpret.
Basic idea:
Let $\mathcal{C}$ be a category. For any object $X$ of $\mathcal{C}$, let $h^X:\mathcal{C}\to\mathsf{Set}$ be the covariant hom functor: $$h^X(Y):=\mathrm{Mor}_{\mathcal{C}}(X,Y),\qquad h^X\left(Y\xrightarrow{\;f\;}Z\right)=\mathrm{Mor}_{\mathcal{C}}(X,Y)\xrightarrow{\;f\,\circ\, -\;}\mathrm{Mor}_{\mathcal{C}}(X,Z)$$ The Yoneda lemma implies that a natural transformation $\gamma:h^X\Rightarrow h^W$ must come from a morphism $g:W\to X$; that is, we must have that $\gamma_Y(k)=k\circ g$ for some such $g$.
If $\gamma_Y$ is injective for all objects $Y$ of $\mathcal{C}$, the corresponding $g$ is an epimorphism (by definition).
Let $A$ be a ring, and fix an $A$-module $N$.
If an $A$-module map $\psi:M_1\to M_2$ is surjective, then $(\psi,\mathrm{id}_N):M_1\times N\to M_2\times N$ is surjective, so that for all $A$-modules $P$, the map $$\mathrm{Hom}(M_2\otimes N,P)\underset{\text{natural}}{\cong}\mathrm{Bilin}(M_2,N;P)\xrightarrow{-\circ(\psi,\mathrm{id}_N)}\mathrm{Bilin}(M_1,N;P)\underset{\text{natural}}{\cong}\mathrm{Hom}(M_1\otimes N,P)$$ is injective. Therefore (?) the induced map $M_1\otimes_AN\to M_2\otimes_AN$ is an epimorphism, which is equivalent to being a surjection for $A$-modules.
A short exact sequence $$M_1\xrightarrow{\;\psi\;}M_2\xrightarrow{\;\rho\;} M_3\longrightarrow 0$$ is equivalent to having a surjective map $\rho:M_2\to M_3$ and a surjective map $\psi:M_1\to\ker(\rho)$. Because the functor $(-)\otimes_AN$ "preserves surjectivity", it must therefore (?) be right-exact.