Tesla Discontinues Cheapest Model 3 Variant Amid Tariff Concerns

Credit: Tesla

Tesla has officially discontinued its most affordable electric car, the Model 3 Standard Range Rear-Wheel Drive, as reflected in the latest update to its online configurator. The move means the starting price for a Tesla has increased, with the next available model, the Model 3 Long Range Rear-Wheel Drive, now priced at $42,500—$3,500 more than the Standard Range variant, which was previously available for $39,000.

This change was first noted amidst discussions on Tesla’s delivery numbers, with the disappearance of the Standard Range model going largely unnoticed until the configurator update. Tesla is known for adjusting its vehicle trims without formal announcements, and this instance appears to be no exception.

The discontinuation of the Model 3 Standard Range can be attributed to recent developments in tariffs affecting battery imports. This model was the last Tesla variant sold in the U.S. that utilized lithium iron phosphate (LFP) battery cells sourced from China. With increased tariffs on these batteries, it is speculated that Tesla determined this trim would struggle to remain competitive in the current market landscape.

For buyers seeking the most economical Tesla option, the Model 3 Long Range RWD now represents the lowest-priced variant available. It offers an extended range of 90 miles for an additional $3,500. Eligible customers may still take advantage of the federal tax credit of $7,500, effectively lowering the cost of the vehicle to approximately $35,000 before considering state incentives and potential fuel savings.

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