With federal tax credits, Tesla has unveiled a Model 3 variant with a 363-mile range that will cost less than $35,000. Delivery of the Model 3 Long Range Rear-Wheel-Drive is scheduled for July and August of 2024, and it is currently available on Tesla’s configurator.
In terms of performance, it falls in between the Long Range AWD option and the standard model, with a top speed of 125 MPH and a 0–60 time of 4.9 seconds. However, the $5,000 AWD option means you’re paying a lot for an additional 0.7 seconds of acceleration. In contrast, the price and range of Hyundai’s Ioniq 6 LR are essentially the same, but it is not qualified for the federal EV tax credit.
When the tax credit is considered, the Model 3 Long Range RWD is now the most affordable electric vehicle from Tesla. This is because the $38,990 base Model 3 RWD version is not eligible for any federal rebates because it employs lithium-iron phosphate (LFP) batteries made in China by CATL.
The new model is released at a time when EV battery costs are falling. According to a recent Bloomberg study, the cost of an LFP cell in China has decreased by almost 51% to $53 per kWh in the last year. As a result, LFP battery packs are now available at $75 per kWh, meaning that in China, EV prices can be comparable to or lower than those of combustion cars. Efforts by the West to match China’s production of batteries would certainly result in overcapacity and lower pricing.
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Tesla debuted its updated Model 3 in the US early this year. Along with new inside materials, heated front seats, a 17-speaker audio system option, and a new eight-inch back display, the new model has some minor outward stylistic modifications.
