Tesla revives popular Model 3 Long Range after hiatus

Tesla is once again taking orders for the long-range version of its Model 3 sedan, which is the most popular electric passenger car in the U.S. by a wide margin.

The option for the Model 3 Long Range returned to Tesla's online order page late Tuesday after it was temporarily discontinued in August last year. It sits between the base Model 3 and the Performance trim level.

"Waitlist is too long," Tesla CEO Elon Musk said on Twitter on Aug. 12 in response to a question about why the Long Range had disappeared. "Will enable again as we ramp production," he said.

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The big-battery sedan will go an estimated 325 miles on a single charge, according to Tesla, and is available for delivery in June. The starting price is $48,880 with shipping. The trim level comes standard with all-wheel drive.

The base Model 3, with rear-wheel drive, is $7,000 less, while the Performance trim level is $6,000 more than the Long Range. The Performance has all-wheel drive, more horsepower and upgraded wheels and brakes.

Tesla said on its website that the Model 3 Long Range is eligible for a federal tax incentive of $3,750, which is the same as the base Model 3. The Model 3 Performance is eligible for a $7,500 credit, according to Tesla.

The federal tax credit is broken into two parts, each worth $3,750 for vehicles made in North America. One half requires local assembly of battery parts and the other half requires sourcing of battery minerals in the U.S. or from countries with a free-trade agreement with the U.S.

Tesla does not operate a press office and did not respond to an email inquiry asking for clarification on why the Model 3 Long Range does not qualify for the full credit. Tesla buys battery cells from several global manufacturers and makes some of its own battery cells at its plants in California and Texas.

The EV website Electrek suggested Tuesday that the revived Model 3 Long Range may use iron-based battery cells from China, similar to the base Model 3 but with a larger pack. The iron cells might qualify for half of the tax credit due to U.S. assembly but not the other half because of Chinese sourcing.

Last year's Model 3 Long Range was rated at 358 miles of range, according to the EPA. It had a starting price of $59,440 with shipping. Tesla models became eligible for a new version of the tax incentive on Jan. 1. Under the previous rules for the credit, Tesla had lost eligibility in 2020 after reaching its quota of 200,000 vehicles.

Tesla's Model 3 and Model Y benefit from both the tax incentive and the automaker's policy this year of slashing prices to spur sales.

The base Model 3 is about 14 percent less expensive compared to Jan. 1. The base Model Y crossover, the automaker's most popular vehicle, is about 25 percent less expensive. Tesla's biggest price cuts came in mid-January, including a $13,000 reduction for the Model Y.

The current base Model Y, which starts at $48,880 with shipping, was introduced in April. Prior to that, Tesla had been offering the Long Range and Performance trim levels of the crossover. The automaker now has three versions of the Model 3 and three versions of the Model Y, compared with two of each a month ago.

Tesla had previously offered a more inexpensive version of the Model Y, but dropped it in early 2021. Musk had said that the standard-range version didn't have sufficient range at 244 miles to satisfy customers.

While Tesla has sharply reduced prices this year for the Model 3 and the Model Y, its most affordable vehicles, it has also made a few upward adjustments, including a $250 increase on Monday. Musk has said the EV leader will adjust prices across its four-vehicle lineup as needed to balance supply and demand.

Tesla's production goal this year is between 1.8 million and 2 million vehicles globally. In 2022, it reported production of about 1.4 million vehicles. The automaker added factories in Texas and Germany last year.

According to estimates by Cox Automotive, Tesla likely delivered 54,954 Model 3 sedans in the U.S. from January to March. Tesla does not break out U.S. sales from global numbers.

Model 3 sales represented about 21 percent of all EV sales in the U.S. for the quarter, Cox said.

For comparison, Chevrolet sold 19,700 units of its Bolt and Bolt EUV hatchbacks in the first quarter and BMW delivered 3,947 units of its electric i4 sedan.

The Model 3 is due for a freshening, according to analysts, while spy photographs suggest changes are coming to the front fascia and rear bumper. Images and videos posted to social media show a Model 3 with its front and rear covered with black camouflage.

Tesla has not made an official announcement on Model 3 updates.