Tesla has stopped selling the cheapest EV!

Tesla has updated Model 3 sales in the US market. The company has removed the most affordable Model 3 option from sale due to rising costs and changing market conditions.

Tesla Removes the Most Affordable Model 3 Option in the US

Tesla has halted sales of the affordable version of the Model 3 in the US due to increased Chinese import duties. With a price tag of $38,990, the Standard Range Model 3 used lithium iron phosphate batteries sourced from China. However, it is no longer available for purchase on Tesla’s US site.

The removal of this option follows the US government’s imposition of additional tariffs on products from China. These tariffs include a 100 percent tariff on electric vehicles and a 25 percent tariff on electric car batteries.

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Vehicles with parts made in China don’t qualify for the $7500 federal electric vehicle tax credit. This led Tesla to remove its cheapest version from sale. Model 3 will now be sold in the Long Range version with a price of 42 thousand 490 dollars.

Although it offers more range than the standard version, it costs about 3500 dollars more. The higher costs are thought to be due to tariffs on critical components such as Chinese-made batteries.

Industry analysts believe that the tax increases make it economically infeasible for Tesla to import and sell the Standard Range version into the US market. The move also signals a shift in the company’s trade policies.

Of course, it should be noted that the Model 3 Standard Range version continues to be sold in other markets such as Europe and Asia.