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What just happened? If you've been considering Tesla's entry-level Model 3 Standard Range as your ticket into Elon Musk's electric vehicle lineup, there's some unfortunate news. Tesla has quietly discontinued the trim, making the Long Range rear-wheel drive the new starting point for the Model 3.
The move raises the starting price of Tesla's most affordable vehicle to $42,490 – $3,500 more than the discontinued Standard Range, which had a sticker price of $38,990. But there's more to this change than just a price bump.
For one, the timing is convenient for Tesla. The shift occurred as the company reported delivering 426,890 vehicles in Q3 2024, a number that fell short of expectations. Discontinuing the cheaper Standard Range may help bolster those critical profit margins.
However, a more likely factor is regulatory pressure. The Standard Range was the last Tesla model to use the more affordable LFP battery cells imported from China. New tariffs have increased the cost of these cells, making the Standard Range ineligible for federal EV tax credits. With these additional costs, keeping this particular configuration no longer makes sense.
An aspiring Tesla owner on a budget will now have to consider other options, and the $42,490 Long Range RWD could be a decent compromise. Despite the higher price tag, it offers 90 miles of additional range compared to the discontinued Standard Range model. When factoring in the $7,500 federal tax credit (if eligible) and potential gas savings, the effective cost drops to around $35,000 before state incentives.
Still, that's a significant jump for many buyers, especially with $30k EVs from other brands starting to enter the market. Tesla seems to be aware of this affordability gap, with rumors circulating about an all-new budget EV slated for 2025. Whether this will be a stripped-down Model 3 variant or an entirely new model remains to be seen.
In the meantime, options for the Model 3 have slimmed down. The Long Range rear-wheel drive is now the entry point, followed by the all-wheel-drive variant at $47,490, and the Performance model at $54,990.
Tesla has a history of fluctuating prices, adjusting them as market conditions demand. The company also quietly discontinues models without much notice, as it did with the $60,990 single-motor RWD Cybertruck.