Tesla’s most affordable Model 3 compact sedan is no longer available for order in the USA, apparently because of new Biden Administration tariffs on Chinese-made EVs and batteries.
The Model 3 Standard Range Rear-Wheel Drive, priced at $38,990, uses lithium iron phosphate (LFP) battery cells sourced from China.
It will continue to be sold in Canada, Europe and Asia, but not in the USA.
The new tariffs went into effect on Sept. 27, including a 100% tariff on EVs (up from 25%) and 25% on batteries and key components, including minerals (up from 7.5%).
Apparently, instead of raising prices to reflect the new regulations, raising the cost of the Model 3 closer to the upscale Model Y, Tesla decided to pull the plug (pun intended) on sales in the USA just a few days later.
The news has generated a fierce discussion by several Tesla enthusiasts on X. formerly Twitter, which also is owned by Tesla’s Elon Musk.
ecoxplorer Prediction
- Elon Musk will use the Model 3 for his planned Robotaxi. Stay tuned.
EVs under $40,000
The entry-level version of the refreshed Model 3 was priced from $38,990 without the destination fee and had an EPA-rated range of 272 miles on a full charge–the least of any Model 3 version on sale.
Despite its low price, it was not eligible for the $7,500 tax credit when purchased.
This made the next trim, the Model 3 RWD Long Range, both more attractive and less expensive. With 363 miles of range on a full charge – nearly 100 miles more the base model – a quicker zero to 60 miles per hour time of 4.9 seconds and an MSRP of $42,490, the rear-driven Long Range has an effective price of $34,990 when factoring in the $7,500 federal tax credit. That’s less than the base model without a tax credit.
With the latest change to its U.S. lineup, Tesla no longer sells any EV with a Chinese-made LFP battery.
The U.S.-spec Model 3 is built in California – or was built in California – while the rest of the world imports the EV from China.
There are several other EVs you can buy for less than $40,000. Some include the $7,500 federal tax credit, others offer only state credits, so shop around.
- Nissan Leaf
- Mini Cooper SE
- Hyundai Kona EV
- Fiat 500e
- Volkswagen ID.4
- Kia Niro EV
- Ford Mustang Mach-E
- Nissan Arriya
ecoXplorer Evelyn Kanter is a journalist with 25+ years of experience as a newspaper and magazine writer, radio & TV news producer & reporter, and author of guidebooks and smartphone apps – all focusing on travel, automotive, the environment and your rights as a consumer.
ecoXplorer Evelyn Kanter currently serves as President of the International Motor Press Assn. (IMPA).
ecoXplorer Evelyn Kanter also is a member of the North American Travel Journalists Assn. (NATJA) and the North American Snowsports Journalists Assn. (NASJA).
Contact me at evelyn@ecoxplorer.com.
Copyright (C) Evelyn Kanter
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