Tesla’s Cheapest Model 3 Has Been Replaced By Something Even Better

Tesla’s Model 3 is one of the most affordable electric vehicles money can buy, especially with the $7,500 tax credit. First reported by MotorTrend, the automaker has discontinued the entry-level Standard Range model, leaving the Long Range RWD as the new entry point to the range. In recent months, manufacturers have dropped the base models in several lineups, forcing customers to pay more for the cheapest model.

While that is technically the case here, the base Tesla is lighter on the wallet than the Standard Range. At $42,490, the new entry point to the Model 3 range is slightly pricier than before, but thanks to the lucrative incentive, it ends up being cheaper.

The Long Range RWD Just Makes More Sense

With the incentive included, the MSRP of the Model 3 Long Range RWD is reduced to $34,990. That is remarkable value for a brand-new electric sedan that can reach 60 mph in 4.9 seconds and travel 363 miles (EPA estimated) between trips to the charging station. Of course, the Standard Range model did not receive the same credit when it was on sale.

The reason behind this is the different battery packs that Tesla fitted to the different Model 3 variants. The Standard Range model uses a lithium iron phosphate (LFP) pack sourced from China, whereas the nickel cobalt aluminum pack found in the Long Range RWD is made in America. However, the incentive isn’t the only possible reason behind the discontinuation of the Standard Range variant.

Killing Off The Standard Range Makes Sense

Earlier this year, the Biden administration introduced new tariffs on Chinese EVs and Chinese-sourced components. While this aims to protect the American economy and automotive sector, this will also likely make the LFP battery more expensive to source from China. This means that keeping the Standard Range model around would have been impractical, as Tesla would have needed to up pricing for the same capability. With the latest change, there are just three Model 3 variants to choose from.

The Updated Tesla Model 3 Lineup

• Long Range Rear-Wheel Drive ($42,490)
• Long Range All-Wheel Drive ($47,490)
• Performance All-Wheel Drive ($54,990)

The Long Range RWD was only introduced in July, which means it’s a relatively new introduction to the range. Before this, the Standard Range made sense, but the LR RWD’s arrival renders the Standard Range obsolete.

H/T:
MotorTrend