Tesla’s cheapest Model 3 variant no longer for sale in the U.S.

Tesla (NASDAQ:TSLA) discontinued its most affordable Model 3 variant, the Standard Range Rear-Wheel Drive, priced at $38,990, its website showed.

The decision to remove the Standard Range model comes amid rising costs associated with tariffs on Chinese imports, particularly on electric vehicle components like lithium iron phosphate (LFP) batteries, which were utilized in the now-discontinued model.

The U.S. recently imposed increased tariffs that affect these components, making the financial viability of the Standard Range variant questionable.

Further, the vehicles that contain Chinese-made components, such as LFP battery cells, are also not eligible for the $7,500 federal tax credit.

This pullback makes the Long Range RWD Model 3—the cheapest option now available at $42,490. If a $7,500 tax rebate is included, the Long Range RWD comes to $34,990.

The EV maker reported 462,890 deliveries for Q3 on Wednesday that fell short of the consensus estimate of 463,897 vehicles.

Tesla (TSLA) stock traded marginally lower, down 0.33% on Thursday during pre-market hours.