News
Tesla Model 3 Performance and Model X AWD get unique incentive to qualify for IRA credit
Tesla has rolled out a unique incentive for the reengineered Model 3 Performance and the Model X All Wheel Drive (AWD). With the incentive in place, customers would be able to acquire the two vehicles with the federal tax credit even if they add options like premium paint for the Model 3 Performance or seating configurations for the Model X AWD.
The program was initially shared on social media by longtime industry watcher and Tesla podcast Ride the Lightning host Ryan McCaffrey, who shared a screenshot of a message from the electric vehicle maker. As per the message, the Model 3 Performance could be acquired with complimentary paint options as long as it is ordered with Full Self-Driving (FSD). The Model X AWD, on the other hand, could be ordered with complimentary seating options as long as it is ordered with FSD.
Some Tesla news for my Tesla fam out there: You can now get ANY Model 3 Performance config & still stay under the MSRP limit for the tax credit — if you order FSD (which doesn’t affect tax credit eligibility). Same with Model X seating: you can do 6 or 7-seater for free with FSD. pic.twitter.com/0FDU2RmQq9— Ryan McCaffrey (@DMC_Ryan) July 19, 2024
Tesla’s message is as follows:
Model 3 and Model X: Complimentary Option with Full Self-Driving (US Only)
To enable additional Model 3 Performance and Model X All-Wheel Drive vehicles to qualify for the Federal Tax Credit, we are offering complimentary Paint option for Model 3 Performance and Seating Layout for Model X All-Wheel Drive.
For a limited time, customers can choose one of these options for free when Full Self-Driving is added to their order. Visit the announcement for full eligibility details and FAQs.
Note: Offer available for limited time only and subject to change without notice.


A look at the order pages for the Model 3 and Model X on Tesla’s official website shows that the incentive is active as of writing. As could be seen in a screenshot of a Model 3 Performance configured with Ultra Red Paint, the premium paint option is listed simply as “Included” as long as FSD is selected with the purchase. Without FSD, Ultra Red Paint is listed as a $2,000 option.
The same is true for the Model X AWD’s Seating Layout. With FSD included in the order, even the flagship all-electric SUV’s Seven Seat Interior is listed as “Included.” Without FSD in the order, the Model X AWD’s Seven Seat Interior is listed as a $3,500 option.


Tesla’s unique system to ensure the Model 3 Performance and the Model X AWD qualify for the IRA’s federal tax credit would likely be appreciated by customers of the vehicle. The Model 3 Performance, after all, is arguably the best-looking Tesla in the company’s lineup today, so it looks especially good with premium paint. The Model X AWD, on the other hand, is a legitimate people mover, so a six or seven-seat interior arguably fits the flagship all-electric SUV best.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
Elon Musk’s Boring Company selected for Universal Orlando tunnel project
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe.
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project.
The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.
The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.
Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.
The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.
For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area.
“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.
The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.
Elon Musk
Elon Musk tops Forbes’ list of America’s 250 greatest innovators
The ranking places Musk at the top of modern American innovation.
Elon Musk has been ranked No. 1 on Forbes’ inaugural list of America’s 250 Greatest Innovators. The ranking places Musk at the top of modern American innovation as the publication kicks off a series celebrating the nation’s 250th anniversary.
Forbes described innovation as “the grease in the economic engine” and the force that transforms industries and creates new ones. The publication highlighted that its honorees are not just inventors, but business leaders who successfully bring breakthroughs to market.
Musk, 54, was ranked No. 1 in this year’s list. Forbes noted that he is “the only person in history to have founded (or grown from nearly nothing) five companies, each with multibillion-dollar valuations, each in a different industry.” Those companies include Tesla, SpaceX, Neuralink, xAI, and The Boring Company.
Forbes’ methodology began with nearly 1,000 nominees submitted by its reporters. A panel of judges, including venture capitalist Jim Breyer, journalist Kara Swisher, and strategy expert Rita McGrath, ranked candidates based on creativity, breadth, engagement, disruption, and commercial impact. Artificial intelligence tools, including ChatGPT and Gemini, were also used to assess candidates before editors finalized the rankings.
The publication noted that more than one-third of the list consists of women and people of color, reflecting shifts in innovation and entrepreneurship over time. All individuals listed are also American citizens, though many were born abroad, including Musk himself. Musk was born in Pretoria, South Africa.
Ranked No. 2 is Jeff Bezos, 61, who Forbes credited with upending America’s $7.4 trillion retail industry through Amazon before pioneering cloud computing with Amazon Web Services. The publication highlighted that Bezos now focuses on space exploration through Blue Origin and artificial intelligence manufacturing systems at Prometheus.
At No. 3 is Bill Gates, 70, who helped launch the personal computing revolution and built Microsoft into the dominant force in workplace software. Forbes also highlighted Gates’ reinvention at age 50 as a data-driven philanthropist, including his role in helping eradicate polio from India.
Elon Musk
Tesla Model Y tops California vehicle sales despite Elon Musk backlash
Data from the California New Car Dealers Association (CNCDA) showed the Model Y outsold its nearest competitor by more than 50,000 units.
The Tesla Model Y was California’s best-selling new vehicle in 2025 for the fourth straight year, despite protests against CEO Elon Musk and a changeover to the Model Y’s updated variant that caused a pause in production and deliveries early in the year.
Data from the California New Car Dealers Association (CNCDA) showed the Model Y outsold its nearest competitor by more than 50,000 units, according to KRON4.
The Model Y recorded 110,120 registrations in California in 2025. The second-best-selling vehicle, the Toyota RAV4, posted 65,604 units, followed by the Toyota Camry at 62,324. The Tesla Model 3 ranked fourth with 53,989 sales, ahead of the Honda Civic at 53,085 units.
Despite leading the state, Model Y sales have trended downward year-over-year. Registrations fell from 132,636 in 2023 to 128,923 in 2024, and then to 110,120 in 2025. Overall Tesla sales in California also declined, dropping from 238,589 in 2023 to 202,865 in 2024 and 179,656 in 2025.
The slowdown comes as the federal $7,500 EV tax credit ended, removing a key incentive that had supported electric vehicle demand for years.
“Tesla has a few advantages. Tesla, as a brand, has a status, cache, so I think folks in certain parts of the Bay. Owning a Tesla is a thing. I think that’s breaking down over time, especially given the political controversies surrounding Mr. Musk,” CNCDA President Brian Maas said.
California saw multiple anti-Musk protests in 2025, along with notable reports of consumer-owned Teslas being vandalized and attacked by protesters and activists. The fact that the Model Y and Model 3 remained strong performers in California is then a testament to the quality and value of the two vehicles.
Tesla’s sales of the Model Y and Model 3 might see an increase this year, as the company has announced that it is sunsetting its two more expensive cars, the Model S and Model X. With the Model S and Model X retired, more consumers will likely go for the Model Y and Model 3.
“Maybe the Model S has outlived its usefulness in terms of attracting customers. It’s no surprise the ones they kept are the Model Y and Model 3,” Maas noted.