Tesla has officially discontinued sales of the base Model 3 RWD (Rear-Wheel Drive) in the United States. According to an update to Tesla’s Design Studio on Tuesday evening, there are now 3 variants of the […]

Tesla did not announce the reason behind ending sales of its former base Model 3, which started at US$38,990, but the decision was likely influenced by several key factors. Primarily, the base Model 3 was built with lithium iron phosphate (LFP) batteries sourced from China. While these LFP batteries offer advantages like longer lifespan and lower costs, their Chinese origin ultimately disqualified the Model 3 RWD from the full US$7,500 federal EV tax credit.

In contrast, the Model 3 Long Range RWD, which now sits as the base model in the Model 3 lineup in the US, features a larger battery with a range of 363 miles (584km), and it qualifies for the full federal incentive.