Tesla makes white interior free for one Model 3 configuration: Here’s why

Credit: Tesla

Last night, Tesla adjusted the price of the Model 3 Performance, increasing it by $1,000. Simultaneously, it made the white interior option for the Model 3 Performance free of charge but raised it to $2,000 for the other configurations.

Here’s why.

Tesla Model 3 Performance Price Increase

Tesla’s price increase of the Model 3 Performance was the second since its launch on April 23. Priced at $54,990, the vehicle now falls just $10 under the threshold that qualifies an electric vehicle for the $7,500 EV tax credit.

The Model 3 Performance, at launch, was priced by Tesla at $52,990, and early orderers enjoyed a $2,000 savings compared to what the car costs now.

Tesla Model 3 Performance price goes up $1,000

White Interior

The White Interior option for the Model 3 Performance, previously priced at $1,500, is now free. Why?

If Tesla kept the vehicle at the $54,990 price and a customer decided they wanted the $2,000 interior option, it would effectively cost them $9,500 because it would disqualify the car from the $7,500 tax credit. It would be over the $55,000 threshold.

The following qualifications need to be met for the car to qualify for the $7,500 tax credit:

  • Have a battery capacity of at least 7 kilowatt  hours
  • Have a gross vehicle weight rating of less than 14,000 pounds
  • Be made by a qualified manufacturer
  • $80,000 for vans, sport utility vehicles and pickup trucks
  • $55,000 for other vehicles

Six in One Hand, a Half Dozen in Another

To offset the loss from the free White Interior option on the Model 3 Performance, Tesla raised the price of the interior color on the Model 3’s Rear-Wheel-Drive and Long Range All-Wheel-Drive by $500.

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Tesla makes white interior free for one Model 3 configuration: Here’s why
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