Tesla has officially discontinued its cheapest electric car, the under $40,000 Model 3 Standard Range Rear-Wheel Drive. The version of the car that was provided during 2023 claimed a 272-mile range on a full charge, establishing itself as a significant stride by Tesla in the direction of providing an electric vehicle for those on a budget. As of now, that position belongs to Model 3 RWD Long Range, at $42,490, with a 363-mile range, almost 100 miles more than what the company offered earlier.
The deletion of the Standard Range version brings out, once more, the very many times that Tesla has changed its prices and models as per the market conditions. The firm has kept high sales in electric vehicles running for years, but this time around there seems to be fluctuating demand as the options increase for consumers and with it occasional slumps in sales. These have made the company change its strategies, such as quietly getting rid of certain trims by then, like the $60,990 RWD Cybertruck in early 2024.
Growing production costs are thought to have played a role in Tesla’s decision to phase out the Standard Range Model 3. As reported by Electrek, the LFP (lithium iron phosphate) batteries used in the car are manufactured in China. Producing this car became unaffordable due to the Biden administration’s higher taxes on Chinese imports, which included vital minerals and batteries.
Although there isn’t a sub-$40,000 model available anymore, Tesla is shifting its focus to higher-end and longer-range models. In the future, Tesla has alluded to a new, more reasonably priced electric car that might be on sale in 2025. It is uncertain if it will be an entirely new model or a more simplified Model 3. But even as manufacturing constraints increase, Tesla is still committed to making EVs affordable while striking a balance between cost-effectiveness and innovation in response to changing market demands.
