Tesla discontinues LFP Model 3 RWD in the United States

The Tesla Model 3 Rear Wheel Drive (RWD) with LFP batteries are no longer listed in the all-electric sedan’s order page. The update was observed by members of the electric vehicle community on Tuesday. 

A look at the Tesla Model 3’s updated U.S. order page shows that the vehicle is now offered in three variants: the Model 3 Long Range RWD, which starts at $42,490 before options and incentives; the Model 3 Long Range All Wheel Drive (AWD), which starts at $47,490 before options and incentives; and the Model 3 Performance, which starts at $54,990 before options and incentives.

Prior to the update, another variant of the Model 3 was available, which was simply called the Model 3 RWD. The vehicle was equipped with a lithium iron phosphate (LFP) battery and an EPA-estimated range of 272 miles per charge. The Model 3 RWD was priced at $38,990 before options and incentives. Due to its battery pack, it also does not qualify for federal incentives.

Interestingly enough, the removal of the LFP-powered Model 3 RWD was implemented just days after the Biden administration increased tariffs on Chinese-made lithium-ion EV batteries. With this in mind, Tesla’s removal of the 272-mile Model 3 RWD may be partly due to the company’s efforts to optimize the entry-level sedan’s production costs. 

This means that Tesla now no longer sells any cars in the U.S. that use a Chinese LFP battery.

A few days ago, the Biden administration raised tariffs on Chinese EVs imported to the U.S. to 100% (from 25%) and on lithium-ion batteries and battery parts to 25% (from 7.5%).

While… https://t.co/qcmKLroWwk

— Sawyer Merritt (@SawyerMerritt) October 2, 2024

Apart from the Biden administration’s new tariffs, another potential driver for the removal of the Model 3 RWD may be the presence of the Model 3 Long Range RWD, which is not equipped with an LFP battery pack. The Model 3 Long Range RWD presents better value, with its EPA-estimated range of 363 miles per charge—the highest in the Model 3 line–and a starting price of $42,490 before options and incentives. 

Considering that the price gap between the Model 3 RWD and Model 3 Long Range RWD was only $3,500, a notable number of customers in the United States may be opting for the vehicle’s Long Range RWD variant. For that extra $3,500, after all, customers would be getting 91 miles of extra range and a superior 0-60 mph time. The Model 3 Long Range RWD also qualifies for federal incentives. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

The post Tesla discontinues LFP Model 3 RWD in the United States appeared first on TESLARATI.