- The entry-level Tesla Model 3 was the only EV in Tesla's lineup to use a Chinese-made battery.
- Known simply as the Model 3 RWD, it wasn't eligible for the $7,500 federal tax credit.
- The model has been discontinued in the U.S.
Tesla has discontinued the cheapest version of its most affordable electric vehicle, most likely due to the increased tariffs on Chinese-made EVs and batteries that went into effect on September 27.
The Tesla Model 3 Rear-Wheel Drive, which is powered by a Chinese-made lithium iron phosphate (LFP) battery, is no longer available to order on the American automaker’s website in the United States as of yesterday, according to several Tesla enthusiasts who noticed the change yesterday.
The entry-level version of the refreshed Model 3 was priced from $38,990 without the destination fee and had an EPA-rated range of 272 miles on a full charge–the least of any Model 3 version on sale.
Despite its low price, it was not eligible for the $7,500 tax credit when purchased (it might have been eligible for the credit when leasing.) This made the next trim, the Model 3 RWD Long Range, a much more attractive and cheaper proposition. With 363 miles of range on a full charge, a quicker zero to 60 miles per hour time of 4.9 seconds and an MSRP of $42,490, the rear-driven Long Range has an effective price of $34,990 when factoring in the $7,500 federal tax credit.
With the latest change to its U.S. lineup, Tesla no longer sells any EV with a Chinese-made LFP battery. The U.S.-spec Model 3 is built in California, while other parts of the world import the EV from China.
On September 27, the Biden administration’s hiked tariffs on imported EVs and EV batteries went into effect. The rate for imported Chinese electric vehicles went from 25% to 100%, while lithium-ion batteries and battery parts are now subject to a 25% tariff, up from 7.5% previously.
