Tesla Discontinues Most Affordable Model 3 Variant In U.S.

Tesla's most affordable Model 3 compact sedan is no longer available for order in the U.S., according to the EV maker's website, Harshita Mary Varghese reported for Reuters.

Tesla's Model 3 Long Range Rear-Wheel Drive is now its most affordable offering in the U.S., priced at $42,490. I Photo: Tesla

The Model 3 Standard Range Rear-Wheel Drive, priced at $38,990, used lithium iron phosphate (LFP) battery cells sourced from China. The U.S. recently announced higher tariffs on Chinese imports, including a 100% tariff on EVs and a 25% tariff on EV batteries and key minerals.

Additionally, vehicles containing Chinese-made components, such as LFP battery cells, are ineligible for the $7,500 federal tax credit provided by the government.

Tesla's Model 3 Long Range Rear-Wheel Drive is now its most affordable offering in the U.S., priced at $42,490. Earlier today, the EV maker reported a smaller-than-expected rise in third-quarter deliveries, indicating that incentives and financing deals have not sufficiently attracted customers.