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.

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.

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.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. 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 Twitter @KlenderJoey.
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