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2024 Tesla Model 3 Performance sees price hikes, maxes out federal tax credit cap

The rising price of the Model 3 Performance is significant because it hits the $55,000 threshold for the federal tax credit.

The 2024 Tesla Model 3 Performance has seen a gradual increase in price since its launch in April, underscoring the benefit of early orders. Currently, Tesla’s U.S. website lists the top-tier Model 3 Performance at $54,990, not including $1,640 in obligatory fees. This price reflects a $1,000 increase from April 29 and a $2,000 increase from the initial launch price.

The rising price of the Model 3 Performance is significant because it hits the $55,000 threshold for the federal tax credit for cars. This credit offers up to $7,500, which Tesla appears to be carefully navigating. The automaker has made strategic adjustments, such as making the Black and White interior options free—down from $1,500 initially—to avoid surpassing the price cap.

Conversely, the black-and-white interior for the Model 3 RWD and Long Range AWD versions now costs $2,000, up from $1,500. This suggests Tesla is responding to the high demand for the Model 3 Performance by allowing price increases while maintaining eligibility for the tax credit.

Evidence of strong demand for the Model 3 Performance is also seen in its delivery estimates, which have extended to July 2024 from June 2024. In comparison, the Model 3 RWD and Long Range AWD versions, which do not qualify for the tax credit, have delivery times of May-June 2024.

Here’s a breakdown of the current pricing and fees for the various 2024 Tesla Model 3 versions:

  • Model 3 RWD 18-in**: Base Price $38,990 + Destination Charge $1,640 = $40,630 (no tax credit)
  • Model 3 RWD 19-in**: Base Price $40,490 + Destination Charge $1,640 = $42,130 (no tax credit)
  • Model 3 Long Range AWD 18-in**: Base Price $47,740 + Destination Charge $1,640 = $49,380 (no tax credit)
  • Model 3 Long Range AWD 19-in**: Base Price $49,240 + Destination Charge $1,640 = $50,880 (no tax credit)
  • Model 3 Performance LR AWD 20-in**: Base Price $54,990 + Destination Charge $1,640 = $56,630 – $7,500 federal tax credit = $49,130

Tesla also includes a $1,390 destination fee and a $250 order fee as the total mandatory fees for all models. Additionally, the $7,500 federal tax credit might be available through leasing for all models and versions.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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