Tesla Just Discontinued Its Cheapest Car, But It Doesn’t Really Matter
Tesla Model 3 Standard Range, we hardly knew you.
Tesla has discontinued what was its lowest-priced car in the U.S. after about two years on the market.
The Model 3 Standard Range was priced at $38,990 (not including the mandatory destination fee). The rear-wheel-drive model was rated for up to 272 miles of driving between charges.
It was one of the lowest-priced electric vehicles on sale, but not for everyone. Since it used a battery pack imported from China, it did not qualify for the federal tax credit on electric vehicle purchases.
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That means the $42,490 Model 3 Long Range that was launched in July and is rated at 363 miles of range, was effectively cheaper to buy for customers who qualify for the credit. Tesla didn’t make any announcement on the move or explain the reasoning behind the model’s removal, but a new 25% tariff on batteries imported from China likely cut into its profitability.
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Tesla probably isn’t sweating it too much as it hasn’t been having much trouble selling cars lately. It reported a 6.4% increase in the third quarter, although it didn’t say exactly how many of those were Model 3s.
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But it’s out with the old and in with the new as Tesla is scheduled to unveil its Robotaxi on Oct. 10. There’s no word yet on when it will enter production or be deployed in a ride-hailing scheme, but the new model will make its debut on the Warner Bros. studios lot in Burbank, Calif., where camouflaged units have been spotted undergoing testing ahead of the event.
Elon Musk has also promised that there would be a few more things the company has been working on to show. One may be an updated version of the new Roadster that’s supposed to go on sale in 2025, but there is another possibility that could relate back to the Model 3.
Tesla has suspended plans to build an all-new $25,000 vehicle in Mexico and is instead working on a new low priced model based on its current Model 3/Y architecture that will first be produced in Texas. It could be as simple as a very stripped-down version of the Model 3 or Model Y, like one it recently launched for sale in Mexico, but the company has had little to say about it so far.
In the meantime, one company that must be thrilled with the Model 3 Standard Range’s departure from the market is Chevrolet, which just opened the order books on its $34,995 Equinox EV, which has a 319-mile range and qualifies for the full $7,500 tax credit, bringing its out-the-door price down to $27,495. Chevy delivered $9,772 of the Mexican-made compact SUVs from July through September, its first full quarter on sale.
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