Tesla may not offer the cheapest electric car on sale, but the Model 3 is your best bet if you want a well-sorted electric vehicle with great technology and decent range. Before the Model Y came along, the Model 3 was the best-selling vehicle in the automaker’s lineup. It still remains one of the best electric vehicles you can buy for the money.
In recent years, Tesla has been lowering the prices of their vehicles to be more competitive and affordable, so ditching the cheapest model might seem like a bad idea, but there is more thought behind this move. The rising cost of battery production and an increase in import tariffs are some of the major reasons why the Standard Model 3 was discontinued.
Tesla Discontinued Its Cheapest Model 3
Tesla updated Model 3, which was shown in late 2023. These updates included a completely restyled but familiar exterior, new interior technology, and new technical improvements at lower production costs. This meant the latest Model 3 was a great car with new features with a sub-$40,000 price tag but that ended recently and quietly.
Tesla did not announce that any model would be discontinued, but the base Standard is no longer available for purchase. Instead, it has been replaced with the Model 3 Long Range Rear-Wheel-Drive with an MSRP of $42,500, which is $3,500 more than the previous Standard trim. Despite Tesla claiming the Model 3 was built at a reduced cost, the Standard Model would have become more expensive to make in the long run.
Battery Technology Discontinued This Model
The Standard Model 3 used LFP (lithium iron phosphate) battery cells which were sourced from China. This helped Tesla build their vehicles at a subsidized rate but there was a drawback with these batteries. EVs with these batteries did not qualify for the $7,500 tax credit available to EV owners and this meant the Standard Model 3 was among those vehicles. Furthermore, the Biden administration has set higher import tariffs on Chinese-made products including batteries.
These added costs and lack of incentives would have made the cheapest Model 3 quite expensive over time. It just didn’t make sense, so Tesla decided to axe this model in favor of the next vehicle which had better batteries and could easily qualify for the EV tax incentives.
The Cheapest Model 3 Still Offers A Lot Of Value
The Long Range Rear-Wheel Drive Model may be more expensive, but it offers way more value than that price would initially suggest. For starters, it has 91 miles more range at 363 miles vs 272 for the Standard model. This is due to the NCA (nickel cobalt aluminum) batteries used in this model which is produced here in America. Not only does it offer way more range but it also helps Tesla keep production costs low which means you can still have an affordable Tesla EV.
The New Model Is Still Cheaper
The biggest advantage of this change is that the cheapest Model 3 is finally able to take advantage of the $7,500 government tax credit available to eligible EV owners. This means you could get a brand-new Model 3 Long Range at an MSRP of around $35,000, which is $4,000 less than the previous Standard model but with more range, performance, better technology, and features. With this move, The Tesla Model 3 may very well retain its position as the best value-packed EV on sale. Tesla sales have been booming and we may see another rise in demand for the beloved Model 3.
2024 Tesla Model 3 Long Range Highlights
- New Battery Technology
- Better Range
- Better Interior Technology
- Effectively Cheaper Price
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