Tesla stops taking orders for all Model 3 variants in Taiwan – but why?

tesla model3
Credit: Tesla

Tesla has stopped taking orders all Model 3 variants in Taiwan, just weeks before deliveries of the first Model Y vehicles are expected to begin in the country.

Earlier this summer Tesla stopped taking orders for the Model 3 Long Range in Taiwan, and over the weekend that was extended to both the Rear-Wheel Drive and Performance variants.

The Tesla Design Studio was updated to have the prices for all variants removed, with a note saying “the release date has not been determined,” and for customers to check the existing inventory page of the website. (h/t: @Tslachan)

Tesla did not provide an reason for the change, but it is believed to have happened because of the new Inflation Reduction Act (IRA) in the US.

Despite Taiwan’s proximity to China and Tesla’s Giga Shanghai, ongoing geopolitical tensions between the two countries means the Model 3 delivered in Taiwan has been imported from Fremont.

With the IRA Tesla is expected to reduce exports to other countries so they can capture the $7,500 tax credit that goes along with the new bill. Only the Rear-Wheel Drive Model 3 equipped with the lithium iron phosphate (LFP) battery will not qualify for the credit.

Tesla analyst Troy (@TroyTeslike) believes another country that could see their Model 3 orders halted is South Korea, which is also getting both the Model 3 and the Model Y from Fremont. All variants of both vehicles are still available for order for now.

The strained relationship between Taiwan and China also means Tesla has to import the Model Y into the country from Giga Berlin.

Tesla Model 3 Power Trunk Retrofit ...
Tesla Model 3 Power Trunk Retrofit in China

Tesla finally opened up Model Y orders in September, and the first deliveries are scheduled to begin in early December.

First Tesla Model Ys from Giga Berlin arrive in Taiwan ahead of December deliveries

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca