EV giant Tesla Inc (NASDAQ:TSLA) has introduced a new variant of its Model 3 sedan in the U.S. with an estimated range of 363 miles.

What Happened: The new Long Range Rear-Wheel Drive variant starts at $42,490 and is eligible for a federal EV tax credit of $7,500, taking the effective price for eligible customers down to $34,990 or below the cheapest variant of the Model 3.

With the latest addition, Tesla's Model 3 lineup in the U.S. is as follows:

A Long-Range All-Wheel Drive variant is also available on Tesla's mass-market Model Y SUV, starting at $44,990. However, on the Model Y, Tesla replaced the existing rear-wheel drive variant with the long-range AWD variant instead of adding a fourth variant to the lineup.

Why It Matters: Tesla's Model 3 lineup has undergone the most changes among Tesla's entire lineup since the start of this year. Tesla launched the refreshed Model 3 across the U.S. in January with slight differences in both the interior and exterior design of the vehicle.

Tesla initially offered only two variants of the updated Model 3: rear-wheel drive and long-range. The Performance variant was added later in April.

The Model 3 and Model Y account for a whopping majority of Tesla's overall deliveries. In the second quarter, Tesla delivered 422,405 Model 3 and Model Y, accounting for a whopping 95% of the company's overall global deliveries.

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