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Tesla Model 3 Performance price goes up $1,000

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Tesla increased the price of the Model 3 Performance by $1,000 on Thursday night from $53,990 to $54,990.

Tesla launched the new Model 3 Performance on April 23, listing it at $52,990 and equipping it with a brand new set of specs, including a 163 MPH top speed and a 0-60 MPH acceleration time of just 2.9 seconds.

Just a few days after launching the new Model 3 Performance, Tesla pushed the price upward by $1,000 to $53,990. This was not expected, but Tesla has a knack for adjusting prices on a whim.

This point has been proven once again tonight, as the price went up by $1,000 once again. It is now $54,990. The Model 3 Performance currently qualifies for the $7,500 tax credit, and with Tesla’s estimated $5,000 in gas savings over five years, the company’s projected price is $42,490:

Along with the increase on the Model 3 Performance, Tesla also changed several other things, including the price of several interior options.

Interior Option Price Changes

Tesla increased the price of the following interior options for the Model 3:

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  • White Interior for Model 3 Rear-Wheel-Drive – $500 more to $2,000
  • White Interior for Model 3 Long Range – $500 more to $2,000

Tesla also decreased the price of the White Interior on the Model 3 Performance, and it will cost no extra for this.

This is likely so it will still qualify for the tax credit, but buyers will have their choice of interior color.

Tesla Pricing Increase Strategy

Tesla pushes prices up on EVs to strengthen its gross margins, which were some of the best in the automotive industry a short time ago. This was a main concern for investors last year as Tesla slashed prices to push demand upward, as it pressured margins.

However, Tesla has to be careful with this move, as lower prices can hurt investors and the stock price. With that being said, affordability is the main concern, and bringing EVs to a price point that the average car buyer can afford is most important.

It is important to note that this may be the final price increase Tesla applies to the Model 3 Performance as it falls just under the $55,000 threshold that qualifies it for the EV tax credit.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Starlink V3 satellites could enable SpaceX’s orbital computing plans: Musk

Musk’s remarks come as companies explore how orbital infrastructure could solve the Earth-bound energy and cooling challenges that come with hyperscale AI computing.

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(Credit: SpaceX)

As artificial intelligence fuels surging demand for computing power, Elon Musk has hinted that SpaceX may use its Starlink V3 satellites to develop space-based data centers. 

Musk’s remarks come as companies explore how orbital infrastructure could solve the Earth-bound energy and cooling challenges that come with hyperscale AI computing.

SpaceX could lead the race to orbit-based computing

After Ars Technica published a report on autonomous space construction, Musk replied on X: “Simply scaling up Starlink V3 satellites, which have high speed laser links would work. SpaceX will be doing this.” 

SpaceX’s Starlink V3 platform is capable of up to 1 terabit per second (Tbps) throughput, so it could potentially form the foundation for orbital computing clusters powered by solar energy. 

Proponents have noted that such data centers could eliminate the massive land, water, and power footprints of traditional facilities on Earth. Critics, however, have question the economics and complexity of maintaining large-scale data systems in orbit.

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Elon Musk, for his part, recently reiterated on X that this particular idea is a very big deal. 

SpaceX’s track record is substantial

Despite the reservations for such a radical idea, SpaceX’s track record is pretty much bulletproof at this point. The company’s Starlink network, once deemed as unrealistic by critics, now delivers broadband to millions worldwide while turning a profit. Its Falcon 9 rockets, which are capable of landing on land or on a drone in the middle of the ocean, are also among the world’s most reliable. 

With this track record in mind, it would seem that Elon Musk’s idea of using Starlink satellites as the building blocks for a space-based data center might not be too farfetched at all.

Interest in space-based data storage and processing has intensified in recent months, Ars noted. Former Google CEO Eric Schmidt reportedly acquired Relativity Space with an eye on orbital data infrastructure, while Jeff Bezos recently predicted gigawatt-scale data centers will operate in space within two decades.

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Tesla Model Y L gains V2L capabilities with software update

The 2025.32.300 update, which is rolling out to Model Y L vehicles in China, introduces several notable additions.

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Tesla has quietly added Vehicle-to-Load (V2L) functionality to the Model Y L through its latest over-the-air update in China, giving owners the ability to power external devices directly from their EVs.

The addition of the feature was highlighted by Tesla in its release notes for China’s 2025.32.300 update.

Model Y L gains V2L and other convenience upgrades

The 2025.32.300 update, which is rolling out to Model Y L vehicles in China, introduces several notable additions. First among them is an “external discharge function,” which enables V2L capability through an official adapter that Tesla plans to release later.

The feature should enable the Model Y L to power appliances, tools, or possibly even other EVs, making it extra useful for camping trips or the occasional power outages. 

Other improvements include a lower temperature limit for Dog Mode, customizable low-battery settings to conserve energy while parked, and expanded personalization for the vehicle’s “Rave Cave” entertainment feature. Tesla noted that certain functions may vary depending on vehicle configuration, and rollout timing could differ by region.

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Model Y L is surging in China’s SUV rankings

Despite being new in the market, the Model Y L is already making some waves in  China’s top-selling mid-to-large SUVs lists. Data from Yiche showed that Tesla sold 8,221 units in September, securing fourth place in the segment behind the Leapmotor C16, Li Auto L6, and the Xiaomi YU7.

The Model Y L’s rapid ascent highlighted its strong market appeal despite a higher price point than most local competitors. Interestingly enough, the Xiaomi YU7, which is positioned closer to the standard Model Y with its five-seat configuration, topped the rankings with 22,244 units sold in September.

With Tesla’s continued free software upgrades, as well as its features like Full Self-Driving (Supervised), however, the Model Y L may have a chance at climbing China’s lists for the best-selling mid-to-large SUVs.

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Investor's Corner

Elon Musk’s 2025 pay package gets support from Tesla’s biggest bull

ARK Invest founder Cathie Wood has previously stated that she is quite confident that the vote on Elon Musk’s 2025 Performance Award would pass.

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Credit: Tesla Singapore/X

Cathie Wood, CEO of ARK Invest and one of Tesla’s most ardent bulls, reiterated her support for Elon Musk’s 2025 CEO Performance Award. 

Wood highlighted that Musk’s leadership attracts incredible talent, and it has allowed the companies he leads such as Tesla to become disruptors in their respective fields.

ARK Invest supports Musk’s leadership

Elon Musk’s 2025 CEO Performance Award has received a mixed reception. Proxy firms such as Glass Lewis and Institutional Shareholder Services (ISS) have stated that they would be voting against Musk’s pay package. Other entities, such as the State Board of Administration of Florida (SBA), have stated that they would be voting in favor of Tesla’s proposals. 

ARK Invest founder Cathie Wood, for her part, has previously stated that she is quite confident that the vote on Elon Musk’s 2025 Performance Award would pass. She also stated that a favorable result to the vote for Musk’s 2025 pay plan would be beneficial for Tesla.

“Elon Musk is the most productive human being on earth. And a human being who attracts incredible talent, people who want to solve the world’s hardest problems. This is a win-win for all of us if Elon succeeds this time,” Wood stated. Musk appreciated Wood’s comments, stating, “Thanks Cathie!” In a post on X.

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ARK Invest has been one of Tesla’s most loyal bulls

Tesla is ARK Invest’s single largest holding, with the firm holding an estimated $1 billion worth of TSLA, as noted in an Insider report. Wood previously said she expects the approval of Musk’s pay package to trigger “super-exponential growth” for the automaker, as new products like the Cybercab and Optimus expand Tesla’s offerings.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI, and it’s not stopping with Robotaxis. There’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” Wood stated during an appearance at Steven Bartlett’s podcast The Diary Of A CEO.

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