Tesla has discontinued its cheapest electric car model: the Model 3 Standard Range Rear-Wheel-Drive.
Last night, Tesla updated its online Model 3 configurator.
While we were focused on Tesla’s delivery numbers this morning, we didn’t even realize that the Model 3 Standard Range was gone from the automaker’s online configurator:
At $39,000, it was the cheapest Tesla to buy. Now, the most affordable is $3,500 more expensive: the $42,500 Model 3 Long Range Rear-Wheel-Drive.
Tesla often changes its vehicle trims without making any announcement or giving any explanation for the changes.
However, we have a pretty good idea of what happened this time.
The Model 3 Standard Range was the last Tesla vehicle offered in the US that used LFP battery cells from China. Chinese battery cells recently received increased tariffs on imports into the US, and those batteries also make it more difficult for electric vehicles to access the $7,500 tax credit.
Top comment by BLH17
Correct, you can't sell a vehicle like that ineligible for the $7500 tax credit when you can grab LR for less...pretty easy decision. Hopefully we start making LFP batteries (with a bit higher density than we have seen in the EVs so far) in the US within a couple of years. They are still very useful for lower range EVs and battery storage at home / grid scale.
Tesla likely figured that this particular trim wouldn’t be as competitive under the increased tariffs.
Now, buyers looking for the cheapest Tesla vehicle possible will have to go with the Model 3 Long Range RWD, which has 90 miles more range for $3,500 more. If you are eligible for the federal tax credit (income limitations), you save $7,500 – making it a $35,000 vehicle before state incentives and gas savings.
Power your electric car with solar power. EnergySage is a free service that helps you get solar quotes from the best solar installers in your area and compare them easily. They have hundreds of pre-vetted solar installers, including Tesla in some markets, competing for your business, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
Comments