Sad day for EV lovers: Elon Musk’s Tesla discontinues cheapest Model 3 from lineup

Tesla has officially discontinued its most affordable electric car, the Model 3 Standard Range Rear-Wheel-Drive. This version, priced below $40,000, is no longer available in the company’s lineup.

The Standard Range model, first introduced in 2023, offered a 272-mile range on a full charge and was a significant part of Tesla’s effort to provide an accessible electric car option.

The company now offers the Model 3 RWD Long Range as the most affordable option, starting at $42,490. While the price difference may not seem significant, the new base model provides a range of 363 miles, nearly 100 miles more than the discontinued version.

Rising prices and changing strategies

Tesla is known for changing prices pretty often, downgrading or upgrading with market fluctuations. For the last couple of years, Tesla has managed to maintain a strong handle on electric car sales.

However, with more and more consumers considering other brands , there have been some fluctuations in their year-to-year sales that can be identified, including a major slump during some periods.

Despite these challenges, Tesla continues to make strategic moves to stay competitive. One of these strategies includes discontinuing certain vehicle trims without much notice. For example, earlier in 2024, Tesla quietly removed the $60,990 RWD Cybertruck from its offerings.

These sudden shifts reflect Tesla’s approach to responding quickly to market demands and production costs, which are influenced by various factors, including tariffs and supply chain disruptions.

As reported by Electrek , the discontinuation of the Model 3 Standard Range is likely connected to the rising costs of lithium iron phosphate (LFP) batteries, which the vehicle used. These batteries are produced in China, and with the Biden administration recently increasing tariffs on Chinese imports , including critical minerals and batteries, it is possible that they made the cost of producing this model unsustainable.

While this move leaves Tesla without a sub-$40,000 vehicle, it also positions the company to streamline its offerings and focus on models with longer ranges and higher price points.

Future models and affordability concerns

Although the Model 3 Standard Range Rear-Wheel Drive is no longer available, Tesla is already looking ahead. The company has hinted at a new, more affordable electric vehicle that is expected to launch in the second half of 2025. Whether this will be an entirely new model or a simplified version of the Model 3 remains to be determined.

However, the promise of a cheaper electric vehicle suggests that Tesla is still committed to making EVs accessible to a broader audience, even as production costs and pricing pressures increase.

One of the challenges Tesla faces in making a more affordable car is how much more they can simplify their vehicles. Recent models, for instance, have already removed traditional drive and turn signal stalks, relying instead on touchscreen controls.

Despite these innovations, a stripped-down version of the Model 3 produced in Mexico was more expensive than its U.S. counterpart, highlighting the complexity of balancing affordability with production costs.