Tesla cancels its cheapest electric car

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.

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.

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