Following a recent change to tariff rates on Chinese imports, including EV components like batteries and raw materials, Tesla has discontinued sales of the Model 3 Standard Range Rear-Wheel Drive in the U.S.
The SR RWD model is no longer available for custom orders, although some units are still listed on Tesla’s inventory page. The vehicles listed on the inventory page are those that have already been imported into the U.S. and thus remain available for sale.
Tax Credit
The US Federal EV Tax Rebate doesn’t count towards the Model 3 Standard Range – which ships with an LFP battery that is primarily produced and manufactured in China at CATL.
While the Standard Range Rear Wheel Drive variant was the cheapest Tesla on offer at $38,990, the Long-Range RWD was cheaper at $42,490 if you include the $7,500 Tax Rebate – which is offered at the point of sale. After the discount, the Long Range RWD is only $34,990.
That means that offering this the Standard Range model – for the vast majority of Americans who are eligible for the Tax Rebate – didn’t make a lot of sense. There wasn’t a particular reason to purchase the Standard Range variant over the Long-Range Variant – unless you were one of the few not eligible for the Tax Rebate.
Those not eligible were also those more likely to buy a Model 3 Performance or Model S instead – as their income likely places them far above the tax brackets that the EV Rebate applies for, or otherwise completely unable to afford the purchase of a new vehicle.
Canadian Tariffs
Canada has followed the lead of the US on tariffs on Chinese goods, which includes EVs. Canada is imposing a 100% tariff and also eliminating the federal EV rebate of $5,000 CAD on EVs built in China. Tesla did warn initially that price increases could be coming to the Canadian market.
Instead, as we expected, Tesla has begun to source its vehicles from the United States for the Canadian market instead, which are still applicable for the EV rebate, and do not have the tariff applied to them. Now, both Fremont and Giga Texas will begin sourcing vehicles for Canada for the first time since late 2022 – when the last few vehicles from Fremont made the trip to Canada.
Interestingly, the regular Standard Range RWD model is still available in Canada – not the Long Range. We’re expecting Tesla to make a change to this within the next few days – changes to the Canadian site usually follow the American site.
