What is the reason for the Tesla Long Range Rear-Wheel Drive version being taken off the shelf?
2 Answers
Tesla Long Range Rear-Wheel Drive version was taken off the shelf to alleviate supply chain pressure, reduce costs, and make way for updated products. After several rounds of price adjustments for the Tesla Model 3, the price of the Long Range Rear-Wheel Drive version became close to that of the Long Range All-Wheel Drive version. Discontinuing the former helps alleviate supply chain pressure and reduce costs. Currently, there are five versions of the Model 3 available for sale in China, among which the domestically produced Standard Range Plus version is now open for pre-orders. In July of this year, Tesla adjusted the prices of its models. Tesla's response was to simplify the vehicle purchasing process. Tesla is standardizing its global product matrix and streamlining the trim options for Model S, Model X, and Model 3. To increase production capacity, Tesla has exhausted all possible measures, including building a Gigafactory in Shanghai, China. However, the construction of the factory, including production, debugging, and delivery, requires a certain amount of time to complete. Therefore, up to now, Tesla can only alleviate production capacity issues by streamlining models and simplifying processes. Thus, for Tesla, taking models off the shelf is an indirect way to increase its production capacity.
The discontinuation of the Tesla Model 3 Long Range Rear-Wheel Drive version is primarily a result of product line optimization. Based on my analysis of Tesla's recent moves, the company has been simplifying its vehicle lineup in recent years to reduce production costs and improve efficiency. Although the rear-wheel-drive version performs well in terms of range, its demand is relatively low, especially in winter or wet regions where driving stability is inferior to all-wheel-drive versions. Additionally, with Tesla's introduction of new structural battery and 4680 battery technologies, resources have been increasingly allocated to higher-margin models. This reflects automakers' strategic adjustments: reducing complexity, focusing on volume-selling products, and ensuring enhanced brand competitiveness. Market feedback indicates a consumer shift toward all-wheel-drive or performance versions, making the rear-wheel-drive model naturally phased out under cost control measures. Buyers are advised to consider updated models for better driving experience and range assurance.
