Tesla discontinues most affordable Model 3 variant in US, website shows

AUSTIN: Tesla's most affordable Model 3 compact sedan was no longer available for order in the US, according to the EV maker's website on Wednesday.

The Model 3 Standard Range Rear-Wheel Drive, priced at US$38,990 (RM165,000), uses lithium iron phosphate (LFP) battery cells sourced from China.

The US recently announced higher tariffs on Chinese imports, including a 100% tariff on EVs and 25% on EV batteries and key minerals.

Additionally, vehicles that contain Chinese-made components, such as LFP battery cells, are ineligible for the US$7,500 (RM31,575) federal tax credit provided by the government.

Tesla's Model 3 Long Range Rear-Wheel Drive is now its most affordable offering in the United States, priced at US$42,490 (RM179,000).

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.