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.

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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