Tesla is soon re-launching the Model 3 Long Range after it went off the road for over nine months, and this time, it will come with a lower range as well as Lithium-iron-phosphate (LFP) battery cells used in the Chinese Model 3 and the Standard Range of the car; or it may even be a new chemistry based on the LPF.
This news appeared on Tesla's website recently, that is, in the Tesla Model 3 design studio. Tesla had categorically said that the Model 3 would be available in 2023 itself.
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| The new Tesla Model 3 could be cheaper -- Photo: Townfield Car Sales. |
Battery same as Chinese version of Model 3
However, there could be certain changes, which indicate that the car may be using the same Tesla LFP pack used in the Chinese version of the Model 3 as well as in the Standard Range model of the car.
The car would now come with a range of over 325 miles (523 km), compared to the earlier 358 miles (576 km). This is because LFP is a cheaper battery cell and comes with less dense technology.
New Model 3 qualifies for US tax credit
And now, this new Model 3 variant can get $3,750 of the US electric vehicle (EV) tax credit, just like the Standard Range. A car has to be assembled in North America if it were to qualify for tax cuts.
Also, 40 per cent of the critical minerals have to be from either the US or free-trade nations and 50 per cent of the battery components have to be made in North America. The percentage of each of these will go up with every passing year.
For Model 3, why only half the tax cuts
So far as the Tesla Model 3 Standard Range is concerned, it only qualifies for one of the two categories, and hence, it only gets half the credit.
The Tesla car’s LFP batteries are from CATL, a Chinese battery firm, and so, there is no tax credit on this.
The reason is the same for the long-range version as it may be sourcing batteries from the same supplier.
For the long-range model to qualify for tax cuts, Tesla has to source batteries from North America or a free-trade nation.
Advantages and disadvantages of LFP batteries
LFP batteries have their own positives and negatives. They are less energy dense, and this makes them cheaper.
They do not require cobalt, which is a difficult mineral to get, and there are human rights issues with its mining.
LFPs have less degradation, implying the battery will stay healthy for a longer period of time. This battery, however, shows poor performance in extreme cold temperatures.
Despite all these, CATL would be introducing a more energy-dense battery, probably this year itself.
Tesla Model Y, Model 3 pricing similar
Also, with an additional $3,750 of US federal tax credit, the Long-Range Model Y will be at par with the Model 3 in terms of pricing (for certain variants though).
E-Vroooom’s views
With Tesla Long-Range Model 3 again hitting the road in the US after nine months, although with lower range and Chinese battery, prices may come down significantly and this could propel the car’s sales to a new high.
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