Do esim compatible ipads must have sim card tray?

All models of iPad are available in two basic variants - these being WiFi Only (with no built-in cellular capabilities at all) and WiFi+Cellular models.

To date, all WiFi+Cellular models have a physical SIM slot. Recent WiFi+Cellular models also include an internal eSIM - although the iPad can only use either the physical SIM or the eSIM (unlike iPhone, dual-SIM operation is not supported by iPad). As such, you have choice as to which type of SIM that you use, although this choice may be determined by your Cellular Service Provider.

The iPad User Guide provides information about setting-up Cellular service:

Set up cellular service on iPad (Wi-Fi + Cellular models) - Apple Support

If evaluating the relative merits of WiFi Only versus WiFi+Cellular models, you may need to consider the functional differences. Aside from the obvious Cellular functionality, only WiFi+Cellular models include GNSS/GPS location capabilities - which may impact any Apps or features that require accurate and consistent location data, such as Mapping. 

Purchase of a WiFi+Cellular model provides access to precise location services, but does not commit you to using Cellular connections. WiFi Only models of iPad have no Cellular or GNSS/GPS functions at all.

All cellular iPads will have a physical SIM card slot. Ones with only Wi-Fi can't be used with either physical SIMs or eSIMs.

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