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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.
News
Tesla opens Robotaxi access to everyone — but there’s one catch
Tesla has officially opened Robotaxi access to everyone and everyone, but there is one catch: you have to have an iPhone.
Tesla’s Robotaxi service in Austin and its ride-hailing service in the Bay Area were both officially launched to the public today, giving anyone using the iOS platform the ability to simply download the app and utilize it for a ride in either of those locations.
It has been in operation for several months: it launched in Austin in late June and in the Bay Area about a month later. In Austin, there is nobody in the driver’s seat unless the route takes you on the freeway.
In the Bay Area, there is someone in the driver’s seat at all times.
The platform was initially launched to those who were specifically invited to Austin to try it out.
Tesla confirms Robotaxi is heading to five new cities in the U.S.
Slowly, Tesla launched the platform to more people, hoping to expand the number of rides and get more valuable data on its performance in both regions to help local regulatory agencies relax some of the constraints that were placed on it.
Additionally, Tesla had its own in-house restrictions, like the presence of Safety Monitors in the vehicles. However, CEO Elon Musk has maintained that these monitors were present for safety reasons specifically, but revealed the plan was to remove them by the end of the year.
Now, Tesla is opening up Robotaxi to anyone who wants to try it, as many people reported today that they were able to access the app and immediately fetch a ride if they were in the area.
We also confirmed it ourselves, as it was shown that we could grab a ride in the Bay Area if we wanted to:
🚨 Tesla Robotaxi ride-hailing Service in Austin and the Bay Area has opened up for anyone on iOS
Go download the app and, if you’re in the area, hail a ride from Robotaxi pic.twitter.com/1CgzG0xk1J
— TESLARATI (@Teslarati) November 18, 2025
The launch of a more public Robotaxi network that allows anyone to access it seems to be a serious move of confidence by Tesla, as it is no longer confining the service to influencers who are handpicked by the company.
In the coming weeks, we expect Tesla to then rid these vehicles of the Safety Monitors as Musk predicted. If it can come through on that by the end of the year, the six-month period where Tesla went from launching Robotaxi to enabling driverless rides is incredibly impressive.
News
Tesla analyst sees Full Self-Driving adoption rates skyrocketing: here’s why
“You’ll see increased adoption as people are exposed to it. I’ve been behind the wheel of several of these and the different iterations of FSD, and it is getting better and better. It’s something when people experience it, they will be much more comfortable utilizing FSD and paying for it.”
Tesla analyst Stephen Gengaro of Stifel sees Full Self-Driving adoption rates skyrocketing, and he believes more and more people will commit to paying for the full suite or the subscription service after they try it.
Full Self-Driving is Tesla’s Level 2 advanced driver assistance suite (ADAS), and is one of the most robust on the market. Over time, the suite gets better as the company accumulates data from every mile driven by its fleet of vehicles, which has swelled to over five million cars sold.
The suite features a variety of advanced driving techniques that many others cannot do. It is not your typical Traffic-Aware Cruise Control (TACC) and Lane Keeping ADAS system. Instead, it can handle nearly every possible driving scenario out there.
It still requires the driver to pay attention and ultimately assume responsibility for the vehicle, but their hands are not required to be on the steering wheel.
It is overwhelmingly impressive, and as a personal user of the FSD suite on a daily basis, I have my complaints, but overall, there are very few things it does incorrectly.
Tesla Full Self-Driving (Supervised) v14.1.7 real-world drive and review
Gengaro, who increased his Tesla price target to $508 yesterday, said in an interview with CNBC that adoption rates of FSD will increase over the coming years as more people try it for themselves.
At first, it is tough to feel comfortable with your car literally driving you around. Then, it becomes second nature.
Gengaro said:
“You’ll see increased adoption as people are exposed to it. I’ve been behind the wheel of several of these and the different iterations of FSD, and it is getting better and better. It’s something when people experience it, they will be much more comfortable utilizing FSD and paying for it.”
Tesla Full Self-Driving take rates also have to increase as part of CEO Elon Musk’s recently approved compensation package, as one tranche requires ten million active subscriptions in order to win that portion of the package.
The company also said in the Q3 2025 Earnings Call in October that only 12 percent of the current ownership fleet are paid customers of Full Self-Driving, something the company wants to increase considerably moving forward.
News
Tesla scores major court win as judge rejects race bias class action
The ruling means the 2017 lawsuit cannot proceed as a class action because plaintiff attorneys were unable to secure testimony commitments from at least 200 workers.
Tesla scored a significant legal victory in California after a state judge reversed a class certification in a high-profile race harassment case involving 6,000 Black workers at its Fremont plant. The ruling means the 2017 lawsuit cannot proceed as a class action because plaintiff attorneys were unable to secure testimony commitments from at least 200 workers ahead of a 2026 trial, a threshold the judge viewed as necessary to reliably represent the full group.
No class action
In a late-Friday order, California Superior Court Judge Peter Borkon concluded that the suit could not remain a class action, stating he could not confidently apply the experiences of a much smaller group of testifying workers to thousands of potential class members. His ruling reverses a 2024 decision by a different judge who had certified the case under the belief that a trial of that size would be manageable, as noted in a Reuters report.
The lawsuit was originally filed by former assembly-line worker Marcus Vaughn, who alleged that Black employees at Tesla’s Fremont factory were exposed to various forms of racially hostile conduct, including slurs, graffiti, and instances of disturbing objects appearing in work areas. Tesla has previously said it does not tolerate harassment and has removed employees found responsible for misconduct. Neither Tesla nor the plaintiffs’ legal team immediately commented on the latest ruling.
Tesla’s legal challenges
While the decertification narrows the scope of this particular case, Tesla still faces additional litigation over similar allegations. A separate trial involving related claims brought by a California state civil rights agency is scheduled just two months after the now-vacated class trial date. The company is also contending with federal race discrimination claims filed by the U.S. Equal Employment Opportunity Commission, alongside several individual lawsuits it has already resolved.
For now, the reversal removes the large-scale exposure Tesla would have faced in a unified class trial, shifting the dispute back to individual claims rather than a single mass action. The case is Vaughn v. Tesla, filed in Alameda County Superior Court.