On October 17, 2024, Tesla announced the discontinuation of the Model 3 Standard Range Rear-Wheel-Drive, its most affordable electric vehicle priced under USD 40,000.
This decision marks a significant shift in Tesla's strategy, as the rising costs of lithium iron phosphate (LFP) batteries and increased tariffs on Chinese imports have made it challenging to maintain competitive pricing for entry-level models.
The new lowest-priced option is now the Model 3 RWD Long Range, starting at USD 42,490, which offers a range of 363 miles.
In response to consumer demands for budget-friendly options, Tesla plans to introduce a new affordable EV by 2025, aiming to expand its market reach while navigating current economic pressures.