Tesla Model 3 Performance Receives Second Price Hike Just Three Weeks After Launch

Tesla launched the new Model 3 Performance on 23 April 2024 at an advertised MSRP of just $52,990, but days later, it bumped the price to $53,990. The timing was bad, but Tesla has historically always changed its pricing on the fly, and not always for the worse; an example is the Model S Plaid, which can now be had for under $90,000 when it launched originally closer to $130,000. But just a few weeks later, Tesla has now inflated the price of the Model 3 Performance for the second time since its launch, with the automaker’s website now showing the MSRP at $54,990.

Model 3 Performance Almost Ineligible For $7,500 Tax Rebate

This has substantial ramifications for a number of reasons, the most important of which is the Inflation Reduction Act and the $7,500 tax credit applicable to cars with batteries manufactured in the US. In the entire updated Model 3 lineup, the Model 3 Performance is the only derivative to qualify based on this criteria. It also undercuts the $55,000 MSRP requirement for cars (specifically non-SUVs and trucks) set by the government to be eligible. But this latest price hike pushes the Model 3 Performance perilously close to that figure, within just $10. This means the only way you can get $7,500 back at the point of purchase is to take one with no optional extras. Admittedly, options are few for the Model 3 Performance, but you’re now even more limited than you were two weeks ago.

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Which Tesla Model 3 Performance Qualifies For The Cash Back?

We recently covered how something as simple as the Ultra Red paint option for the M3P (a $2,000 option) actually changed the price of the electric sedan by nearly $10,000. But with this latest price adjustment, the band of customization has been narrowed further. Anything more than the standard paint now pushes the sedan over the eligibility threshold. In fact, the only spec you can buy that qualifies is a Stealth Grey Model 3 Performance on 20-inch Warp wheels. The good news is that the white and black interior, which previously cost $1,000, is now a no-cost option, so you can at least decide the color of your interior and still get the big discount.

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Full Self-Driving Capability Qualification Remains Uncertain

What is somewhat uncertain is whether the $8,000 cost of Full Self-Driving Capability is considered part of the MSRP in the eyes of the government. The official legislation stipulates:

The MSRP is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges, the cost of optional items added by the dealer, or taxes and fees. In addition, manufacturer/dealer incentives and trade-ins do not affect MSRP.

The uncertainty stems from the fact that the hardware necessary for FSD Capability is, as far as we can ascertain, comes equipped with the car whether you opt for it or not. It is then activated at the dealer if you decide to pay for it, and can even be activated after purchase through the Tesla App. We have reached out to Tesla to try and clarify this, as it could impact whether or not you need to pay $8,000 up front for the service or whether you can add it later and still get the tax credit (which would nearly pay for FSD Capability in its entirety).

With Tesla’s unpredictable nature when it comes to pricing, holding out before purchasing a Model 3 Performance is now risky. The brand is just as likely to decrease prices again in the near future as it is to increase them, and any future increase of more than $10 would see the customer lose out in a big way.