Texas (TDI): Tesla has quietly stopped producing its most affordable Model 3 sedan in the US, the Standard Range Rear-Wheel Drive model.
Reuters claims Tesla took the $38,990 model down from their website.
Model 3 Long Range Rear-Wheel Drive is now the most economical option, with the base price of Tesla’s entry-level automobile rising to $42,490 as a result of the change.
In reaction to recent US tariffs, the model—which uses lithium iron phosphate (LFP) batteries sourced from China—was decided to cease.
The US enforced a recent tax of 100% on electric cars (EVs) imported from China and a 25% tariff on EV batteries and essential minerals.
Tesla’s Standard Range Model 3’s affordability was further complicated by the fact that it was no longer eligible for the $7,500 federal tax credit.
Also read: China Approaches WTO Against EU Over Tariffs on EVs
One reason for the market’s persistent affordability problems is the fact that most electric cars—including Teslas—cost more than their gas-powered counterparts.
Although no such model has been announced yet, Tesla has indications that it will produce a cheaper car.
With third-quarter sales reaching 462,890 vehicles, Tesla marginally outperformed analysts’ forecasts for vehicle deliveries, prompting the termination of the Standard Range Model 3.
China is another market where Tesla is facing increased competition, as manufacturers like BYD, Xpeng, and Nio are introducing more reasonably priced EV options.
With a price tag of about $16,800, Xpeng’s new Mona M03 is less than half the price of Tesla’s Model 3 in China. In an effort to rival Tesla’s Model Y, Nio and BYD also intend to launch Onvo, a new, cost-effective brand.
Also read: BMW Presses Germany Against Chinese EVs Tariffs
Nio also intends to introduce a second brand, Firefly, with automobiles priced under $30,000. Analysts predict that by the end of 2024, more than 100 new EV models will be introduced in China thanks to government initiatives that support reasonably priced EVs.
Regarding the cancellation of the Model 3 Standard Range and its plans for reasonably priced EVs, Tesla has not yet given any statement.
