Tesla presented Model 3 variant with a range of 363 miles that will cost less than $35,000 after federal tax credits. The Model 3 Long-Range Rear-Wheel Drive is now in Tesla’s configurator, with deliveries expected between July and August 2024.
In terms of performance, it falls in line between the base model and the Long Range AWD variant, with a top speed of 125 mph and a 0-60 time of 4.9 seconds. The AWD option is a $5,000 upgrade, so you’re paying a lot for the extra 0.7 seconds of acceleration. In comparison, Hyundai Ioniq 6 LR has about the same range and price, but doesn’t qualify for the federal EV tax credit.
If you factor in the tax credit, the Model 3 Long Range RWD is now Tesla’s cheapest EV. That’s because the $38,990 Model 3 RWD version uses lithium-iron phosphate (LFP) batteries from CATL in China, so it’s not eligible for any federal rebates.
The new model comes amid falling EV battery prices. In China, the price of an LFP cell has fallen by more than 51 percent over the past year to $53 per kWh. Bloomberg recently reported. This in turn has led to LFP battery packs selling for $75 per kWh, meaning electric vehicles can be sold at the same or lower price than combustion vehicles in China. Western efforts to match China’s battery production will only increase overcapacity and likely drive down prices.
Earlier this year, Tesla launched its own car updated Model 3 in the United States. The new version gets some mild styling changes on the exterior, along with new interior materials, ventilated front seats, a 17-speaker audio system option and a new eight-inch rear display.
