Summary
- Tesla Model 3 RWD with LFP batteries no longer listed on order page
- Model 3 now offered in Long Range RWD, Long Range AWD, and Performance variants
- Removal of LFP-powered Model 3 RWD may be due to production cost optimization
- Model 3 Long Range RWD offers better value with 363 miles range per charge
- Biden administration’s tariff increase on Chinese EVs and batteries may have contributed to removal of Model 3 RWD
Article
Tesla has removed the Model 3 Rear Wheel Drive (RWD) with LFP batteries from its order page in the United States. The update was noticed by the electric vehicle community and now the Model 3 is available in three variants on the order page: the Model 3 Long Range RWD, Model 3 Long Range All Wheel Drive (AWD), and Model 3 Performance. The Model 3 RWD, which had an EPA-estimated range of 272 miles per charge and did not qualify for federal incentives, was priced at $38,990 before options and incentives.
The removal of the Model 3 RWD with LFP batteries occurred shortly after the Biden administration increased tariffs on Chinese lithium-ion EV batteries. This change could be related to Tesla’s efforts to optimize production costs for the Model 3 sedan. The Biden administration’s tariffs included an increase to 100% on Chinese EVs imported to the U.S. and 25% on lithium-ion batteries and battery parts. This move has led to Tesla no longer selling any vehicles in the U.S. that use a Chinese LFP battery.
Another factor that may have led to the discontinuation of the Model 3 RWD is the presence of the Model 3 Long Range RWD variant, which offers a higher EPA-estimated range of 363 miles per charge and a starting price of $42,490 before options and incentives. Customers in the U.S. may be choosing the Long Range RWD variant over the Model 3 RWD due to the better value it offers, with customers getting 91 miles of extra range and a superior 0-60 mph time for an additional $3,500. The Model 3 Long Range RWD also qualifies for federal incentives.
The removal of the Model 3 RWD with LFP batteries could be a strategic move by Tesla to streamline its offerings and optimize production costs. With the Model 3 Long Range RWD offering a higher range and better value for customers, it is possible that the discontinuation of the Model 3 RWD was aimed at aligning the lineup with customer preferences and market demands. The change in Tesla’s Model 3 lineup comes amidst broader shifts in the electric vehicle market, including changes in tariffs on Chinese-made lithium-ion EV batteries.
Overall, the removal of the Model 3 RWD with LFP batteries from Tesla’s U.S. order page reflects the company’s strategy to adapt to changing market conditions and optimize its product lineup. As Tesla continues to focus on expanding its electric vehicle offerings and increasing production efficiency, decisions like discontinuing certain variants may help the company align its lineup with customer preferences and regulatory changes. Customers interested in purchasing a Model 3 in the U.S. now have the option to choose from the Long Range RWD, Long Range AWD, and Performance variants, each offering different features and price points.
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