Tesla’s most affordable Model 3 compact sedan was no longer available for order in the U.S., according to the EV maker’s website on Wednesday.
The Model 3 Standard Range Rear-Wheel Drive, priced at $38,990, uses lithium iron phosphate (LFP) battery cells sourced from China, reports Reuters.
The U.S. recently announced higher tariffs on Chinese imports, including a 100% tariff on EVs and 25% on EV batteries and key minerals.
Additionally, vehicles that contain Chinese-made components, such as LFP battery cells, are ineligible for the $7,500 federal tax credit provided by the government.
Tesla’s Model 3 Long Range Rear-Wheel Drive is now its most affordable offering in the United States, priced at $42,490.
Earlier today, the EV maker reported a smaller-than-expected rise in third-quarter deliveries, indicating that incentives and financing deals have not sufficiently attracted customers.
