Tesla Stops Selling Its Cheapest Car: What This Means for Buyers!

Quick Look

Tesla has recently removed its most affordable vehicle, the Model 3 Standard Range Rear-Wheel Drive, from its online configurator. This model was priced at $39,000 and served as an entry point for many buyers. The new least expensive option is now the Model 3 Long-Range Rear-Wheel Drive at $42,500. This change comes after a refresh of the Model 3 line earlier this year.

Tesla’s Sales Performance

In Q3, Tesla reported delivering 462,890 vehicles, marking a 6.4% increase from last year but falling short of analysts’ expectations of over 469,000 deliveries. Price cuts and incentives helped boost sales during this period; however, these figures may impact CEO Elon Musk’s goal to exceed 1.8 million vehicles sold in 2023.

Recalls Impacting Consumer Trust

Tesla has faced numerous recalls throughout the year affecting hundreds of thousands of vehicles due to various issues such as faulty backup cameras and seat belt problems. While many issues were resolved through over-the-air updates, ongoing recalls could lead to consumer skepticism about vehicle reliability.

Final Thoughts

The discontinuation of Tesla’s cheapest model raises questions about accessibility in electric vehicle markets. As prices rise with new models like the Long-Range variant taking center stage at $42,500, potential buyers may feel priced out. Additionally, ongoing recall issues could further complicate consumer confidence in Tesla’s offerings moving forward.

Reference

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1. Electrek – Tesla Cancels Its Cheapest Electric Car
2. Engadget – Tesla Brings The Model 3 Long-Range RWD To The US For $42K
3. Reuters – Tesla Reports Third Quarter Deliveries Below Estimates