• Tesla reintroduced the Model 3 Long Range RWD in the US with a 363-mile range for $42,490.
  • The car's cost drops to just under $35,000 after the $7,500 federal EV tax credit.
  • The relaunch follows Tesla's major Model 3 redesign amid increased EV market competition.

After five years off the market, Tesla is bringing its Model 3 Long Range Rear-Wheel Drive back to America. The car offers the longest range in the Model 3 lineup at 363 miles while being the second cheapest — starting at $42,490.

While the price is already back on even ground with EV sedan rivals like the Hyundai Ioniq 6, the cost drops even lower to just under $35,000 after the $7,500 federal EV tax credit.

Elon Musk gave an enthusiastic shout-out on X, former Twitter, to the car's announcement on Friday.

The Model 3 series previously consisted of only three options: the Rear-Wheel Drive, the Long Range All-Wheel Drive, and the Performance All-Wheel Drive.

The Long Range RWD Model 3 can accelerate from 0 to 60 mph in 4.9 seconds and, like the standard RWD and Long-Range AWD, has a top speed of 125 mph, according to Tesla.

The relaunch of this more affordable and newly refreshed model — thanks to Tesla's major Model 3 redesign earlier this year — comes as the company has faced increasing competition.

Chinese automaker BYD briefly surpassed Tesla in January as the world's top EV seller, and Tesla has been slashing prices in hopes of increasing sales.

There are signs its strategy may be working. While Tesla reported earlier this month that its Q2 sales dropped for the second consecutive quarter, the numbers weren't as bad as Wall Street had predicted — leading to a stock pop following the news.

Read the original article on Business Insider