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2024 Tesla Model 3 Performance EV white color back view
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2024 Tesla Model 3 Performance Has A Tax Credit Quirk

The all-new Tesla Model 3 Performance could be the one to get. That's because a quirk appears to make a 2024 Tesla Model 3 Performance cheaper to buy than the less-expensive Model 3 Long Range. Here's why that may be the case right now, though we think this could be a deal that's too good to be true.

On paper, Model 3 Performance pricing starts at $52,990 excluding freight. That's $5,250 more than the Model 3 Long Range and $14,000 more expensive than a base Model 3. The Performance sacrifices range (296 miles versus 341 for the LR) in favor of speed (2.9 seconds to 60 mph versus 4.2 in the LR).

But that's not the whole story. Tesla's website says the Model 3 Performance is eligible for a $7,500 federal tax credit that you can't get on other trims. With the full amount, which can now be claimed upfront to reduce the EV's price, Tesla says the Performance can cost $2,250 less than the Model 3 Long Range.

Here's a screenshot of what's shown on Tesla.com. Note that the figures below include both the tax credit and estimated fuel savings over 5 years.

2024 Tesla Model 3 Performance price versus Long Range

That's quite an advantage, though we're taking it with a grain of salt.

While the EPA's website does confirm the 2024 Model 3 Performance is eligible for the tax credit, it's unclear to us whether the latest EV qualifies or not. After all, Tesla technically offered the previous generation Model 3 earlier this year and the EPA says "2023-24" are eligible.

Is this just an error on the EPA website that needs to be fixed? Is it a way for Tesla to grab some headlines amidst its current drama? For now, it could simply mean that Tesla is promising a pretty incredible deal on its newest and fastest Model 3 that EV buyers may not want to ignore.

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2024 Tesla Model 3 performance white color EV front view

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      As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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