The cheapest Tesla Model 3, the Standard Range RWD model, has been discontinued in America. It no longer appears on Tesla’s online ordering page, and while cutting the base model of Tesla’s entry-level sedan might seem like a blatant price hike, it’s really not. That’s because there were only a few weird situations in which The Standard Range RWD was actually the cheapest Model 3. Let me explain.
With a 58 kWh battery pack, the Tesla Model 3 Standard Range RWD was the cheapest Model 3 on offer going by list price alone. For those looking to get into a reasonably priced EV with an MSRP of $38,990, it didn’t seem like a bad bet. However, this is America, and EVs don’t trade on list price alone.
See, the cells in that 58 kWh battery pack were made by CATL in China, which means that, according to the EPA’s website, the Model 3 Standard Range RWD doesn’t qualify for federal tax credits. However, the Model 3 Long Range RWD, by virtue of its USA-made cells, does. Once you deduct $7,500 from the $42,490 MSRP of the Long Range RWD model, its net price drops down to $34,990, or $4,000 less than the Standard Range model.
Even though the lithium iron phosphate battery pack in the Model 3 Standard Range RWD promises benefits like slower degradation, greater performance consistency across its state-of-charge bandwidth, and significantly longer cell life, less range for more money is a difficult sell. Oh, and 91 miles of EPA-rated range isn’t the only thing the Standard Range model gives up.
See, the Long Range RWD model can charge at 250 kW, whereas the Standard Range RWD model could only manage 170 kW. Oh, and Tesla also claims that the Long Range RWD model is nine-tenths of a second quicker from zero-to-60 mph than the Standard Range RWD model. You’d have to really want the CATL-sourced prismatic lithium iron phosphate cells in the Model 3 Standard Range RWD to give up all of that.
Basically, it seems like the stipulations of the Inflation Reduction Act’s origin-linked EV tax credits may be working as designed in this case. The only people really missing out are those who wouldn’t qualify for the tax credits due to high income, and considering the joint income limit is $300,000, the head-of-household income limit is $250,000, and the limit for all other tax filers is $150,000, chances are those individuals aren’t hurting too badly if they pony up for the Long Range RWD model anyway.
So, even though the cheapest Tesla Model 3 has been discontinued, fret not, because on paper, it wasn’t actually the cheapest Tesla Model 3 for the majority of buyers. It’s puzzling that Tesla hung onto offering it for so long, but the deed seems to be done. Also, now’s a good time to mention that the facelifted Model 3 is actually pretty great. Sure, some of the new controls take some getting used to, but it’s much quieter and rides substantially better than the old model. As long as you can stand the guy in charge of the company, this is a pretty good EV to pick up for daily driver duties.
(Photo credits: Tesla, Inc.)
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Is LFP less prone to fire? Then the CATL might still be worth it.
But the real surprise is that Tesla uses different suppliers for the batteries. I thought that those cheapest Teslas were higher models throttled by software to the lower power/range.
As I understand, the LFP also had some serious challenges charging in the cold.
Despite the foul odor of Musk that hangs over Tesla, a Model 3 RWD at $35,000 + tax (and no dealer bullshit) is a tempting alternative to mainstream sedans.
Let’s face it, if you’re getting a Tesla, the RWD Model 3 Long Range is really the one to have anyway, I think I might take it over a Model S
Not everyone qualifies for the tax credit. Apparently not enough of them were buying the base model 3.
I bought one last year, when it qualified for the tax credit. It’s a great EV (notice I didn’t say car) and I have zero regrets!