Tesla Model 3 Performance: Price Hikes and Adjustments Amid Strong Demand

May 17, 2024 News

Tesla Model 3 Performance: Price Hikes and Adjustments Amid Strong Demand

The updated Tesla Model 3 Performance was unveiled last month with an impressive 510 horsepower, and it has already undergone several price adjustments.


Originally launched at $52,990 in the US, the Model 3 Performance was priced lower than the Long Range model after applying tax credits. The car received positive reviews and significant attention, prompting Tesla to raise the price twice, now reaching $54,490. This new price is just $10 below the $55,000 threshold for the full $7,500 US federal EV tax credit.


Tesla has made further changes to the pricing by adjusting the cost of some options. Initially, the "Black and White" interior upgrade was $1,000, but it is now included in the base price. Conversely, the standard black interior now incurs an additional $1,000 cost. These changes complicate the pricing structure, making it difficult for consumers to identify the best value.


Despite the price increases, the Model 3 Performance, with a post-tax-credit price of $47,490, remains slightly cheaper than the Long Range model, which costs $47,740 after tax credits. This small price difference may be a deciding factor for buyers seeking the best deal.


However, the leasing landscape tells a different story. The lease rates for the Rear-Wheel Drive (RWD) and Long Range AWD models are $299/month and $439/month, respectively, significantly lower than the Performance AWD model's $616/month. This substantial difference may deter some potential lessees from choosing the Performance model.


Tesla has also adjusted the pricing for other Model 3 options. The "Black and White" interior, which was previously a $1,500 upgrade for the RWD and Long Range models, now costs $2,000. These changes further complicate the pricing structure and may lead to consumer confusion.


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