Tesla discontinues US orders for most affordable Model 3 variant, its website shows

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(Reuters) - Tesla's (TSLA) 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.

FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo
Tesla China-made Model 3 vehicles. REUTERS/Aly Song (REUTERS / 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.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Mohammed Safi Shamsi)

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