Just a few days after it was launched, Tesla has increased the price of the Model 3 Performance, though basic options still render it more affordable than the Long Range configuration with the federal tax credit.
After Tesla officially launched the highly anticipated Model 3 Performance on Tuesday, the automaker has increased the configuration’s price by $1,000, as can be seen on its order configurator. The Model 3 Performance is now priced at $53,990 in the U.S. after debuting at $52,990, though it’s still the only configuration of the sedan that’s eligible for the $7,500 tax credit.
The Model 3 Performance price hasn’t increased in Canada, remaining at the launch price of CAD $69,990.
Credit: Tesla
When including the tax credit, the base-level Model 3 Performance price comes down to $46,490, or cheaper than the ineligible Long Range configuration ($47,740).
However, it’s also worth noting that, with certain package options, the Model 3 Performance can price above the $55,000 limit on the IRA tax credit, making it ineligible for $7,500 off. For example, adding the $2,000 Ultra Red paint upgrade will boost the Model 3’s price to $55,990, which prices the vehicle out of eligibility for the credit.
Some states also offer additional electric vehicle (EV) credits for additional stackable savings. For example, California and Colorado will give new EV buyers $7,500 and $5,000, respectively. These and other local rebates can often be stacked with the federal incentive to bring the sticker price of certain EVs down even further.
In addition to launching in the U.S. and Canada on Tuesday, Tesla debuted the new Model 3 Performance in several markets worldwide, including a number of European countries, China, Australia, New Zealand and others in Southeast Asia. The configuration has been highly anticipated since the first two variants of the upgraded Model 3 were launched in Europe and Asia last year, and in the U.S. earlier this year.
The Model 3 Performance was spotted being tested several times on public roads, and it was seen at an event in California earlier this month. In a statement in January, Chief Designer Franz von Holzhausen confirmed that the variant would be coming, though Tesla didn’t officially say anything about the trim option until it launched earlier this week.
Elon Musk comments on Tesla’s pricing strategy following cuts
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
News
Tesla one-ups Waymo once again with latest Robotaxi expansion in Austin
Tesla’s new Robotaxi geofence measures roughly 171 square miles of Austin’s downtown and suburbs. This is more than double the size of Waymo’s geofence, which measures 90 square miles.
Tesla’s expansion of the Robotaxi geofence on Tuesday morning was a one-up on Waymo once again, as the automaker’s service area growth helps eclipse its rival in an intense back-and-forth.
A lot of conversation has been made about Tesla’s rivalry with Waymo in terms of the capabilities of its driverless ride-sharing service in Austin, Texas.
The two companies have sparred with one another, answering each other’s expansion, and continuing to compete, all to the benefit of consumers in the region.
Tesla expanded the geofence of Robotaxi once again this morning, and it is another growth that catapults it past Waymo’s service area in Austin — this time by a considerable margin.
Comparison of Tesla’s vs Waymo’s Robotaxi geofence map in Austin, Texas.
Today, @Tesla again massively expanded their geofence area, making it significantly bigger than Waymo’s. pic.twitter.com/tHLJ2qabZJ
— Sawyer Merritt (@SawyerMerritt) August 26, 2025
Tesla’s new Robotaxi geofence measures roughly 171 square miles of Austin’s downtown and suburbs. This is more than double the size of Waymo’s geofence, which measures 90 square miles.
On July 14, Tesla officially overtook Waymo in terms of service area in Austin. But just a few days later, Waymo had responded with a bold statement, expanding from 37 square miles to 90 square miles.
Sarfraz Maredia, Global Head of Autonomous Mobility & Delivery at Uber, said the move “unlock[ed] another key milestone in Austin as our operating territory with Waymo expands from 37 to 90 square miles, which means that even more riders can experience Waymo’s fully autonomous vehicles through the Uber app.”
Tesla did not respond immediately, but it took its time with validation vehicle testing in the Austin suburbs, as we reported yesterday:
Tesla looks to expand Robotaxi geofence once again with testing in new area
Today’s expansion is perhaps the biggest step Tesla has taken in its efforts to continue to grow its Robotaxi platform. This is not only because the company has significantly expanded the size of the geofence, but also because it has ventured into suburban areas and even included Gigafactory Texas in its service area.
Waymo could come up with another timely response as it did when Tesla expanded in late July. We’ll wait to see what it comes up with, as this awesome competition between the two companies is accelerating innovation.
News
Tesla Robotaxi geofence expansion enters Plaid Mode and includes a surprise
Now, on August 26, the Robotaxi geofence has expanded once again, and is estimated to be about 130 square miles.
Tesla has expanded its Robotaxi geofence in Austin for the third time since its launch in late June, and the company added a big surprise with this new service area.
After launching on June 22, Tesla’s driverless Robotaxi service has been expanded three times. Its initial launch was about 20 square miles in size. The first expansion occurred on July 14 and was roughly 42 miles large, more than double the initial geofence size.
The second expansion occurred on August 3 and brought the total service area to roughly 80 square miles.
Now, on August 26, the Robotaxi geofence has expanded once again, and is estimated to be about 170 square miles.
🚨 Tesla has expanded its Robotaxi geofence in Austin once again!
This is the third time the service area has expanded! pic.twitter.com/ZzIWWLIgsQ
— TESLARATI (@Teslarati) August 26, 2025
The expansion of the Robotaxi geofence seemed to show the company’s focus on getting the service to the areas East and West of downtown was an utmost priority.
We reported on the Bee Cave region of the Austin suburbs being a place where Robotaxi validation vehicles were spotted testing in recent days.
Bee Cave is included in the new geofence.
However, that is not the biggest addition to the geofence, and it’s not even close. Tesla added a major area to the new geofence, one that fans of the company will absolutely love: Tesla Gigafactory Texas.
🚨 Tesla Gigafactory Texas is now available in the new Robotaxi geofence: https://t.co/Ctcm0HNZk4 pic.twitter.com/7nyhQNYLww
— TESLARATI (@Teslarati) August 26, 2025
The big question that remains is whether Tesla is expanding the size of its fleet of Robotaxi vehicles in Austin. There have been many questions about the expansions of the fleet and not necessarily the geofence, and while the latter is certainly considered progress, Tesla will need to enable more Robotaxi into the vehicle population to handle the additional rides.
Tesla has been planning to do so, but is still prioritizing safety and does not want to rush any part of the Robotaxi process.
Tesla is also looking to expand to new cities altogether. It is currently moving toward a Robotaxi launch in Florida, Arizona, and Nevada, and has also opened up job postings for Robotaxi operators in New York.
Elon Musk
Elon Musk reiterates his most optimistic prediction yet with “UHI” forecast
Despite his polarizing nature, Elon Musk is, at his core, an optimist.
Despite his polarizing nature, Elon Musk is, at his core, an optimist. If he were not one, he would never have founded Tesla or SpaceX, or pursued projects such as Neuralink or xAI.
Musk’s optimism was on full display on social media platform X recently, when he shared what could very well be his most optimistic prediction yet.
Robots and humans
The Tesla CEO recently responded to a post from David Scott Patterson, who estimated that all jobs will be replaced by AI and robots easily by 2030. In his post, Patterson noted that if robots are sold at the same rate as vehicles, it could result in an output of 320 million robots per year.
Musk responded that eventually, intelligent humanoid robots will far exceed the population of humans, and “there will be many robots in industry for every human to provide products & services.”
Musk is already taking steps to achieve such a future. Tesla’s Optimus humanoid robot is expected to see its first “legion” produced this 2025. During an All-Hands meeting earlier this year, Musk also hinted to Tesla employees that the company will try to produce about 50,000 Optimus robots next year.
Universal High Income (UHI)
Musk has shared similar sentiments in the past, so it was no surprise that some X users asked the CEO how humans could sustain their lives when robots replace working individuals. To this, Musk responded that a Universal High Income (UHI) would be implemented, which should provide people with the best medical care, food, and transport available.
“There will be universal high income (not merely basic income). Everyone will have the best medical care, food, home, transport and everything else. Sustainable abundance,” Musk wrote in his post.
Musk’s comment about sustainable abundance seems to be a prevalent theme in his recent optimistic comments. During Tesla’s second quarter earnings call, for example, Musk hinted that his Master Plan Part Four will describe a path towards sustainable abundance in a post-autonomy world.
Tesla one-ups Waymo once again with latest Robotaxi expansion in Austin
Tesla Robotaxi geofence expansion enters Plaid Mode and includes a surprise
Elon Musk reiterates his most optimistic prediction yet with “UHI” forecast
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