New Tesla Model 3 Performance Price Goes Up As It Waits For EPA Approval

On April 23, Tesla unveiled the refreshed Model 3 Performance, capturing the excitement of enthusiasts with significant enhancements in power, efficiency, and comfort. This latest iteration of the Model 3 Performance is particularly appealing as it is the only variant that qualifies for the $7,500 federal tax credit, making it more affordable than the Long Range AWD variant.

Despite the excitement, deliveries of the new Model 3 Performance, originally scheduled for this month, are currently on hold due to pending EPA approval. The vehicles have already arrived at service centers nationwide, but customers have been notified of delays. Tesla employees remain optimistic, anticipating short delays and rescheduling some deliveries for Sunday, pending timely EPA approval.

In the meantime, Tesla has adjusted the pricing of the Model 3 Performance. Initially priced at $52,990 in April, the sporty sedan now costs $54,990, just shy of the federal EV tax credit threshold of $55,000. This increase means that any additional paid extras, such as non-standard colors, will push the price over the threshold, rendering the vehicle ineligible for the tax credit. To navigate this, Tesla has made the Black and White interior a free option, ensuring that customers can still benefit from the tax credit while avoiding an all-grey, black-interior lineup.

Interestingly, while the Black and White interior option is free for the Model 3 Performance, it has become more expensive for other Model 3 trims. Model 3 RWD and Model 3 LR AWD buyers will now pay $2,000 for white seats, up from $1,500. This price change could incentivize buyers to opt for the Performance variant, which remains a more economical choice with the tax credit and includes the white seats at no extra cost.

The sales trajectory of the refreshed Model 3 Performance remains uncertain. The recent price hike suggests strong initial demand, yet the availability of deliveries as early as June could indicate a potential price adjustment in the near future. In contrast, the Model 3 LR AWD and RWD variants have later estimated delivery windows, potentially influencing buyer decisions. As Tesla navigates these dynamics, the market eagerly awaits the arrival of the new Model 3 Performance.