Tesla’s website shows the most affordable Model 3 variant discontinued in the US

Investing.com — Tesla’s (NASDAQ: ) Model 3 compact sedan was no longer available for order in the U.S. on Wednesday, Reuters reported, citing the electric vehicle maker’s website.

The move comes after the US recently raised tariffs on Chinese imports, which include a 100 percent tariff on electric vehicles and a 25 percent tax on electric vehicle batteries and key minerals, Reuters noted.

US rules have made cars containing Chinese-made parts, such as lithium iron phosphate (LFP) batteries, ineligible to receive $7,500 in federal electric vehicle tax credits.

The standard rear-wheel-drive Tesla Model 3, which is priced at $38,990, uses Chinese-sourced LFP cells.

The report comes as Tesla reported disappointing third-quarter deliveries despite cutting prices and offering new incentives to attract customers.

Tesla delivered 462,890 cars in the July-September period, up 6.4 percent from a year ago but missing Wall Street expectations of 469,828 units, according to LSEG data cited by Reuters.

CEO Elon Musk previously said Tesla, which has been strained by fierce competition and weak consumer demand for electric vehicles, will increase its annual deliveries from an all-time high of 1.8 million last year. But at the current pace, the group should report record shipments in the fourth quarter to avoid a drop in shipments for the full year.

Tesla has cut prices and launched interest-free financing, particularly in China, where its business is facing pressure from domestic rivals such as BYD ( SZ: ). The country is a crucial market for Tesla, accounting for about a third of its sales.

Tesla shares fell on Wednesday after being boosted in recent days by hype surrounding the launch of the company’s new robotaxi on October 10.

Hopes are high that the event will mark a shift in the company’s focus towards AI-powered autonomous driving. Earlier this year, Musk declared that Tesla had become “an AI, robotic business.”

(Reuters contributed reporting.)