Tesla’s website shows most affordable Model 3 variant discontinued in US – Reuters
Investing.com — Tesla’s (NASDAQ:TSLA) affordable Model 3 compact sedan was no longer available for order in the US on Wednesday, Reuters reported, citing the electric vehicle maker’s website.
The move comes after the US recently increased tariffs on imports from China that included a 100% tariff on electric vehicles and a 25% levy on electric-vehicle batteries and key minerals, Reuters noted.
US rules have also made cars containing Chinese-made parts, such as lithium iron phosphate battery (LFP) battery cells, ineligible to receive $7,500 in electric vehicle federal tax credits.
Tesla’s standard Model 3 rear-wheel drive option, which is priced at $38,990, utilizes LFP cells sourced from China.
The report comes as Tesla reported disappointing third-quarter deliveries despite slashing prices and offering fresh incentives to entice customers.
Tesla delivered 462,890 cars in the July to September period, rising by 6.4% from a year ago but missing Wall Street expectations of 469,828 units, according to LSEG data cited by Reuters.
CEO Elon Musk has previously said Tesla, who has been strained by stiff competition and weak consumer demand for electric vehicles, will increase its annual deliveries from an all-time high of 1.8 million last year. But, at its current pace, the group would need to report record-smashing deliveries in the fourth quarter in order to avoid seeing a dip in full-year deliveries.
Tesla has been reducing prices and rolling out zero-interest financing, especially in China, where its business faces pressure from domestic rivals like BYD (SZ:002594). The country is a crucial market for Tesla, accounting for about a third of its sales.
Shares in Tesla dipped on Wednesday after they were boosted in recent days by hype around the unveiling of the firm’s new robotaxi on Oct. 10.
Hopes are high that the event will mark a shift in the company’s focus into artificial intelligence-powered autonomous driving. Earlier this year, Musk declared that Tesla had become “an AI, robotics” business.
(Reuters contributed reporting.)