Cheapest Tesla with longer 363-mile range goes on sale as Model 3 LR RWD qualifies for tax credit

Tesla has re-introduced the RWD Model 3 Long Range back into its US portfolio, and it immediately became the cheapest Tesla with the longest range on offer this side of an expensive Model S.

Unlike the base RWD Model 3, the new Tesla Model 3 LR RWD comes with a battery pack that makes it eligible for the full $7,500 federal tax credit amount. This brings its price down from $42,490 to just $34,990, or even under $30,000, if Tesla's funky "gas savings over 5 years" calculations are to be taken into account.

The $34,990 Model 3 price for those who qualify for the tax credit makes it the cheapest Tesla available. Moreover, it finally widens the gap with the Model Y pricing that risked turning Tesla into a one-trick Model Y pony, as the Model 3 RWD is actually more expensive than the base Model Y since its LFP battery makes it ineligible for the tax credit.

Knowing that a lot of customers might still prefer to shell out $2,500 more and get the larger Model Y, Tesla made the new RWD Model 3 LR simply irresistible, giving it also the longest range of all the "affordable" Tesla models.

It is rated for the whopping 363 miles of range on a charge, and that's on the new stricter EPA standard test, too. In contrast, the RWD Model Y is rated for 320 miles of range.

There is a Model Y version with larger LFP battery in Europe, which offers 600 km (375 miles) on a charge., but that is on the overly generous WLTP cycle, so the new Model 3 is indeed the current mass market champ when it comes to range. Granted, the Model S is rated for 402 EPA miles, but then it is a much more expensive vehicle.

The $34,990 Model 3 LR RWD price with the tax credit makes it rather irresistible as a daily driver, as it is closing in on a tricked Camry hybrid, all the while offering greater acceleration and the FSD option.

For another comparison, the last time Tesla sold a RWD Model 3 Long Range circa 2018, the price was north of $50,000, while the new version comes with vented seats, heated wheel, HW4 with Ryzen processor, trunk lift gate, and a more comfortable ride.

Tesla has also lowered the price of the white Model 3 leather interior 50% down to $1,000, and the 19-inch wheels upgrade is now the same price, down from $1,500.

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