The American car company Tesla withdrew from sale the cheapest electric car from its model range - Model 3 Standard Range, which cost 39,000 dollars, writes Reuters.
The standard rear-wheel drive Model 3 range was the last Tesla model to use lithium iron phosphate (LFP) batteries sourced entirely from China. The US recently announced increased tariffs on Chinese imports and this is why.
U.S. authorities have added, including a 100% tariff on electric vehicles and a 25% tariff on batteries and key minerals for their production. From now on, the company's most affordable model is the Tesla Model 3 Long Range electric car, which costs $42,490.
In addition, vehicles that contain Chinese-made components, such as LFP batteries, are not eligible for a $7,500 federal tax credit provided by the government.