Tesla wants to offer cheaper cars, and advances in battery tech is the only sensible solution.

Will Tesla use Lithium Iron Phosphate battery packs in the U.S. in the future to make a $39,000 Model Y Long Range rear-wheel-drive variant, as well as a Model 3 Long Range RWD that costs the same price as the current Model 3 Standard Range Plus? Cleanerwatt dives into the details and evidence that suggest this is definitely a possiblility.

Sadly, Tesla CEO Elon Musk said there will no longer be a Model Y Standard Range. However, he didn't say that a cheaper Model Y isn't coming. Instead, with Tesla's major focus on growing electric range, the Standard Range vehicles don't really make sense anymore, though some people are excited about them due to the reduced price. Not long ago, we speculated that the Model 3 Standard Range will probably go away before too long as well.

Tesla seems to be weighing it's focusing more on all-wheel-drive vehicles. It just makes more sense, much like the longer range vehicles. The only Tesla model left that's available without all-wheel drive is the Model 3. If the Model 3 Standard Range goes away, perhaps there won't be any new rear-wheel-drive Teslas in the future? However, this doesn't go along with Tesla's goal to make cheaper cars. Not having shorter range, rear-wheel-drive vehicles means only pricier vehicles to choose from.

With that said, Tesla must have plans to continue to reduce prices. In order to phase out standard range, and perhaps even rear-wheel drive, all while committing to reducing prices and offering cheaper vehicles, Tesla will have to make some changes. Since batteries are the number one component in an electric car, and make the most impact on performance, range, and pricing, it only makes sense that Tesla would use advanced in battery tech to achieve its goals.

Hopefully, we'll learn more at today's Battery Day. But, regardless, we do know that Tesla is already using Lithium Iron Phosphate battery packs in China-made Model 3s. Musk recently tweeted that partnerships with other battery makers are still on the table, and potentially increasing. So, why not bring the tech to the U.S. to offer cheaper electric cars?

Let us know what you think in the comment section below. Then, tune in for Battery Day to learn what Tesla has up its sleeve.