Electric Cars News

You Can Now Buy A Tesla Model 3 Performance For Less Than The Long Range AWD Version

The beginning of 2024 brings us a new list of all-electric cars qualified for the federal tax credit of up to $7,500. In some cases, there are now anomalies, and this is true of the Tesla Model 3 Performance.

Only several cars are left on the eligibility list, including the Chevrolet Bolt EV/Bolt EUV duo, Ford F-150 Lightning, Rivian R1T and R1S and several Tesla models. Hopefully, that list will expand as changes to the supply chain and perhaps requirements might allow other models to be included.

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In the case of Tesla, an interesting quirk has emerged as the top-of-the-line Tesla Model 3 Performance does qualify for the $7,500 federal tax credit, while the entry-level Model 3 RWD and Long Range AWD versions do not.

Because of that, a potential customer might get a Model 3 Performance at an effective price of $2,500 lower than in the case of the Long Range AWD; $45,130 vs. $47,630. Remember that this year, the incentive changed to a point-of-sale rebate, so it’s a discount when you buy the car and not something you file on your tax return later.

Model Base Price Dest. Charge Tax Credit Effective Price
2023 Tesla Model 3 RWD 18-inch $38,990 +$1,640 N/A $40,630
2023 Tesla Model 3 RWD 19-inch $40,490 +$1,640 N/A $42,130
2023 Tesla Model 3 Long Range AWD 18-inch $45,990 +$1,640 N/A $47,630
2023 Tesla Model 3 Long Range AWD 19-inch $47,490 +$1,640 N/A $49,130
2023 Tesla Model 3 Perf. LR AWD 20-inch $50,990 +$1,640 $7,500 $45,130

* Tesla adds a destination fee of $1,390 and an order of $250 to all its models for an extra $1,640.

If such a pricing situation continues, there would be no sense to even offer the Long Range AWD version. However, assuming that the incentive will be available for all versions through leasing—which has different regulations and might indirectly include a $7,500 federal tax credit—Tesla might keep the RWD and Long Range AWD versions with a competitive leasing offer.

In the case of the other models, there are no changes. The Model S is not qualified (exceeds the $55,000 price cap for cars), the entry-level Model X Long Range AWD without options qualifies (priced under $80,000), and all Tesla Model Y versions get $7,500. The manufacturer stated that “New Model Y vehicles currently qualify for a federal tax credit for eligible buyers.”

Model Base Price Dest. Charge Tax Credit Effective Price
2023 Tesla Model 3 RWD 18-inch $38,990 +$1,640 N/A $40,630
2023 Tesla Model 3 RWD 19-inch $40,490 +$1,640 N/A $42,130
2023 Tesla Model 3 Long Range AWD 18-inch $45,990 +$1,640 N/A $47,630
2023 Tesla Model 3 Long Range AWD 19-inch $47,490 +$1,640 N/A $49,130
2023 Tesla Model 3 Perf. LR AWD 20-inch $50,990 +$1,640 $7,500 $45,130
2023 Tesla Model S LR AWD 19-inch $74,990 +$1,640 N/A $76,630
2023 Tesla Model S LR AWD 21-inch $79,490 +$1,640 N/A $81,130
2023 Tesla Model S Plaid 19-inch $89,990 +$1,640 N/A $91,630
2023 Tesla Model S Plaid 21-inch $94,490 +$1,640 N/A $96,130
2023 Tesla Model X LR AWD 20-inch $79,990 +$1,640 $7,500 $74,130
2023 Tesla Model X LR AWD 22-inch $85,490 +$1,640 N/A $87,130
2023 Tesla Model X Plaid 20-inch $94,990 +$1,640 N/A $96,630
2023 Tesla Model X Plaid 22-inch $100,490 +$1,640 N/A $102,130
2023 Tesla Model Y RWD 19-inch $43,990 +$1,640 $7,500 $38,130
2023 Tesla Model Y RWD 20-inch $45,990 +$1,640 $7,500 $40,130
2023 Tesla Model Y Long Range AWD 19-inch $48,990 +$1,640 $7,500 $43,130
2023 Tesla Model Y Long Range AWD 20-inch $50,990 +$1,640 $7,500 $45,130
2023 Tesla Model Y Perf. LR AWD 21-inch $52,490 +$1,640 $7,500 $46,630

The Tesla Cybertruck has lost its $7,500 federal tax credit eligibility, which most likely was not available anyway since the early price tags exceed $80,000. However, we have seen reports the Cybertruck “is likely to qualify” for the incentive at a later point.

 

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