Tesla has significantly reduced the price of its 2024 Model 3 Performance, making the high-performance electric vehicle (EV) available for an adjusted price of $40,490 after discounts and federal tax credits, according to a recent announcement shared on X by automotive enthusiast Sawyer Merritt. This move positions the Model 3 Performance as a compelling option for EV buyers seeking performance and value in the competitive electric sedan market.

Tesla Slashes 2024 Model 3 Performance Price To $40,490 With Federal Ev Credit

Unpacking the Price Breakdown

The Manufacturer’s Suggested Retail Price (MSRP) for the 2024 Model 3 Performance starts at $54,990. However, Tesla is offering a series of incentives that substantially lower the cost. A $5,500 inventory discount brings the price to $49,490. Additionally, eligibility for a $7,500 federal EV tax credit further reduces the effective price to $41,990. Tesla also provides a $500 loyalty discount for returning customers and a $1,000 military discount, resulting in the final adjusted price of $40,490 for qualifying buyers.

Sawyer Merritt highlighted the deal on X, stating, “A 2.9s 0-60 time for just $41,490 is nuts. A lot of value for the money.” He also noted that the Deep Blue Metallic and Pearl White paint colors, along with the white interior, are now included at no extra cost for new Model 3 Performance orders in the U.S., with no Full Self-Driving (FSD) purchase required.

Technical Specifications and Features

The 2024 Model 3 Performance boasts impressive specifications. It offers a range of 303 miles (488 kilometers) per EPA estimates, a top speed of 163 miles per hour (262 kilometers per hour), and a 0-60 mph (0-97 km/h) acceleration time of 2.9 seconds. The vehicle comes equipped with Performance All-Wheel Drive, 20-inch Warp Wheels, and a Black Premium Interior. Additional features include adaptive suspension, redesigned aero elements, and new sport seats, enhancing both performance and comfort.

Tesla’s decision to make Deep Blue Metallic, Pearl White Multi-Coat, and Stealth Grey eligible for the $7,500 federal tax credit is a strategic move. These colors were previously subject to additional fees or excluded from certain incentives, but their inclusion now broadens the appeal of the Model 3 Performance to a wider audience.

Market Implications and Industry Context

Tesla’s price reduction aligns with its ongoing strategy to maintain market dominance amid increasing competition from legacy automakers and new EV entrants. The Model 3 Performance competes directly with vehicles like the BMW i4 M50 and the Hyundai Ioniq 5 N, both of which offer similar performance but at higher price points. By lowering the cost to $40,490, Tesla not only undercuts competitors but also makes the Model 3 Performance more accessible to a broader demographic of EV buyers.

The inclusion of the $7,500 federal EV tax credit is a critical factor. This incentive, part of the U.S. government’s push to accelerate EV adoption, applies to vehicles meeting specific battery sourcing and manufacturing requirements. Tesla’s adjustment of eligible colors ensures more configurations qualify, potentially boosting sales. However, buyers should note that tax credit eligibility depends on individual tax circumstances, and not all may qualify for the full amount.

Regulatory Considerations

The federal EV tax credit comes with strict guidelines. Vehicles must be assembled in North America, and a percentage of their battery components must be sourced from the U.S. or free-trade-agreement countries. The Model 3 Performance meets these criteria, but potential buyers should consult tax professionals to confirm eligibility. Additionally, Tesla’s offer of 0% APR financing and a 10% discount on select inventory vehicles adds further incentive, though these promotions may be subject to regional availability and credit approval.

EVXL’s Take

Tesla’s aggressive pricing strategy for the 2024 Model 3 Performance signals a bold move to capture market share in a segment where performance EVs are gaining traction. The adjusted price of $40,490, combined with a 0-60 mph time of 2.9 seconds and a 303-mile range, makes this vehicle a standout value proposition. However, EVXL advises buyers to carefully evaluate their eligibility for the federal tax credit and consider long-term factors such as charging infrastructure and maintenance costs. Tesla’s decision to waive fees for premium colors and interiors is a customer-friendly move, but it also underscores the company’s focus on volume sales over per-unit profit margins—a strategy that could reshape the competitive landscape for performance EVs in 2025 and beyond.