Tesla no longer selling Model 3 RWD in the US

Tesla is no longer selling the Model 3 Rear Wheel Drive (RWD) in the US, reflecting a shift towards a complete US tariff guideline compliance.

The Model 3 RWD has been selling for $38,990 with a 272-mile range and 0-60mph acceleration in 5.8 seconds. The deal breaker for this model was its ineligibility for Federal Tax Credit.

This is due to the use of LFP batteries imported from China, an immensely scrutinized supply chain in the US and European markets. In the past few years, the US has applied new restrictions on battery materials for EVs from China, a major source of cheap battery components.

After these restrictions, the entire Tesla Model 3 lost access to federal subsidies but the company has rebranded its supply chain and launched Model 3 Performance in April. This model reportedly equips LG batteries and it’s eligible for $7,500 federal tax from the first day of sale.

Tesla removes Model 3 RWD base model from US listing (Source – Tesla)

In June, the Tesla Model 3 Long Range All Wheel Drive (AWD) regained tax credit eligibility, which was also ineligible earlier this year.

To complete the eligibility chain, the EV maker introduced Model 3 RWD Long Range in July. It offers 363 miles of EPA range, 125 miles per hour top speed, and 0-60mph 4.9 seconds acceleration.

This new base Model 3 is priced at $42,490 but with a $7,500 tax credit, this price goes down to $34,990. It is price-friendly and has more driving range. Therefore, Tesla no longer has to keep another RWD model listed for customers.