Tesla Introduces New Model 3 Performance Edition
Tesla Inc. has unveiled a new Performance edition of the refreshed Model 3 in the U.S., priced at $52,990. This is higher than its rear-wheel drive and long-range versions, as well as the Model Y Performance. However, unlike the other two versions of Model 3, the Performance variant is eligible for a $7,500 federal EV tax credit, taking the effective price for eligible buyers down to $45,490.
Performance and Features
The Performance version has a range of 296 miles and a top speed of 163 mph. On ordering the vehicle now, customers can take delivery within the next two months.
Refreshed Model 3 Unveiled
Tesla unveiled the refreshed Model 3 in the U.S. in January. The company listed two variants of the car, namely the rear-wheel drive and long-range. The Performance variant, however, was no longer listed. However, later in January, Tesla’s head of Investor Relations Martin Viecha confirmed the release of a refreshed Model 3 Performance variant.
Tax Credit Complexities
While the Performance is the priciest version of the Model 3, the availability of tax credit on it brings down the effective price of the vehicle for eligible customers below the Long Range. But if the customer chooses to lease a Model 3 rear-wheel drive or Long Range instead of buying it, they can avail a $7,500 EV lease incentive distributed over a 24-month or 36-month lease term, making the cost of leasing a Long Range again cheaper than leasing a Performance.
Musk’s Comments on Tax Credits
Tesla CEO Elon Musk has expressed confusion over the criteria for EV incentives under the Inflation Reduction Act (IRA). During the company’s first-quarter earnings call later in the day, Musk also mocked the name of the act, saying it sounds similar to the Irish Republican Army or the Internet Research Agency from Russia.
