Tesla Halts US Sales of Most Affordable Model 3 Due to Chinese Battery Tariffs

By Byte Staff Transportation
FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song

The decision to discontinue the Model 3 Standard Range RWD is largely attributed to the increased tariffs on Chinese-made electric vehicles and batteries. As of September 27, the U.S. imposed a 100% tariff on EVs imported from China and a 25% tariff on EV batteries and key minerals, making the continued sale of this model economically unviable.

The Model 3 Standard Range RWD was priced at $38,990 but was not eligible for the $7,500 federal tax credit due to its Chinese-made battery. In contrast, the Model 3 Long Range RWD, now the cheapest option, is priced at $42,490 but becomes $34,990 after the tax credit, making it a more attractive choice for most buyers.

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