Tesla has made a significant update to its Model 3 lineup in the United States by discontinuing the Model 3 Rear Wheel Drive (RWD) variant with LFP batteries. This change was noticed by keen members of the electric vehicle community on Tuesday.
The Tesla Model 3 is now offered in three different variants on the updated U.S. order page. These include the Model 3 Long Range RWD, starting at $42,490; the Model 3 Long Range All Wheel Drive (AWD), starting at $47,490; and the Model 3 Performance, starting at $54,990.
Previously, the Model 3 RWD variant was available, featuring a lithium iron phosphate (LFP) battery with an EPA-estimated range of 272 miles per charge. Priced at $38,990, this model did not qualify for federal incentives. However, this option has now been removed from the lineup.
The decision to discontinue the LFP-powered Model 3 RWD may have been influenced by the Biden administration’s recent increase in tariffs on Chinese-made lithium-ion EV batteries. With these new tariffs in place, Tesla may be looking to optimize production costs for the Model 3 sedan.
Another factor that could have contributed to the removal of the Model 3 RWD is the availability of the Model 3 Long Range RWD, which does not utilize an LFP battery pack. With an EPA-estimated range of 363 miles per charge and a starting price of $42,490, the Model 3 Long Range RWD offers better value compared to its discontinued counterpart.
Customers in the U.S. may be inclined to choose the Model 3 Long Range RWD over the now-discontinued Model 3 RWD, considering the slight price difference of $3,500. For the extra cost, customers gain 91 miles of extra range and a superior 0-60 mph time, as well as eligibility for federal incentives.
Overall, Tesla’s decision to discontinue the LFP Model 3 RWD in the United States reflects the company’s commitment to optimizing its product lineup and offering customers the best value for their money. It will be interesting to see how this change impacts the sales and overall performance of the Model 3 in the coming months.