Tesla Model 3 No Longer Available for Order in the US

Investing.com — Tesla’s (NASDAQ:TSLA) affordable Model 3 compact sedan is no longer available for order in the US, as reported by Reuters, citing the company’s website.

This change follows recent increases in tariffs on imports from China, including a 100% tariff on electric vehicles (EVs) and a 25% levy on EV batteries and key minerals.

Additionally, US regulations have made vehicles containing Chinese-made parts, such as lithium iron phosphate (LFP) battery cells, ineligible for $7,500 in federal tax credits for electric vehicles.

Tesla’s standard Model 3 rear-wheel drive option, priced at $38,990, uses LFP cells sourced from China.

This report emerges amid Tesla’s disappointing third-quarter deliveries. Despite lowering prices and introducing new incentives, Tesla delivered 462,890 cars from July to September, a 6.4% increase from the previous year but below Wall Street’s expectations of 469,828 units, according to LSEG data cited by Reuters.

CEO Elon Musk has previously indicated that Tesla aims to increase its annual deliveries from an all-time high of 1.8 million last year. However, at its current delivery pace, the company needs to achieve record deliveries in the fourth quarter to maintain year-over-year growth.

Tesla has been slashing prices and implementing zero-interest financing, particularly in China, where the company faces stiff competition from local rivals like BYD (SZ:002594). China is critical for Tesla, contributing to approximately one-third of its total sales.

Shares of Tesla fell on Wednesday after gaining previously from excitement around the unveiling of the firm’s new robotaxi on October 10.

There are high hopes that this announcement will shift the company’s focus towards artificial intelligence-powered autonomous driving. Earlier this year, Musk stated that Tesla had evolved into “an AI, robotics” business.

(Reuters contributed reporting.)