Tesla Model 3 Performance Eligible for $7,500 Tax Credit, Launches at $53K

Tesla Inc. has unveiled a new $52,990 Performance model of its Model 3, eligible for full $7,500 federal EV tax credits. This introduces a more cost-effective option amidst Tesla's current lineup.

Tesla's New $53K Model 3 Performance: Swift, Eligible for Full Tax Credits, and Ready for Delivery

According to Benzinga, the new Model 3 Performance is currently available on the website for $52,990, more than the rear-wheel drive and long-range models and the Model Y Performance. However, unlike the other two Model 3 models, the Performance variation is eligible for a $7,500 federal EV tax credit, lowering the effective price for qualified customers to $45,490.

The Performance variant has a 296-mile range and a top speed of 163 mph. Customers who order the vehicle today expect to receive it within two months.

Tesla introduced the redesigned Model 3 in the United States in January. The firm advertised two variations of the car: rear-wheel drive and long-range. The Performance variant, however, was no longer available.

Later in January, Tesla's head of Investor Relations, Martin Viecha, announced the availability of an updated Model 3 Performance variant.

“You should get the Performance one, once that comes out,” Viecha wrote to television presenter James May, who recently bought a new Model 3.

Tesla Model 3 Options: Tax Credits Lower Costs, Leasing Offers Additional Savings Amid Incentive Confusion

While the Performance is the most expensive version of the Model 3, the availability of a tax credit reduces the vehicle's effective price for qualifying consumers to less than the Long Range.

However, if the client chooses to lease a Model 3 rear-wheel drive or Long Range instead of purchasing one, they can receive a $7,500 EV lease bonus spread out over a 24-month or 36-month lease term, making leasing a Long Range less expensive than leasing a Performance.

Musk said in an X post on April 23 that the criteria for EV incentives under the Inflation Reduction Act (IRA) have made it all very "confusing." During the company's first-quarter earnings call later that day, Musk also mocked the act's name, saying it sounds similar to the Irish Republican Army or Russia's Internet Research Agency.

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