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Tesla’s cheapest Model 3 with the 2024 tax credit might surprise you
The U.S. Treasury’s updated guidance on the federal electric vehicle (EV) tax credit has officially taken effect, as of January 1. With some of Tesla’s vehicles losing access to the credit in 2024, one Model 3 configuration is currently looking more appealing than ever.
The Tesla Model 3 Long Range (LR) and Rear-Wheel-Drive (RWD) configurations are no longer eligible for the $7,500 tax credit as of January 1. However, the Performance model is still eligible and can be purchased for less than the Model 3 LR, as can be seen on the Model 3 order configurator at the time of writing.
With the use of the tax credit, the Performance Model 3 option has now become the second most affordable configuration, though the RWD trim remains Tesla’s cheapest sedan even without the federal rebate.
Tesla’s current Model 3 prices, including the tax credit, are listed below:
- Model 3 RWD: $38,990 (no longer eligible)
- Model 3 LR: $45,990 (no longer eligible)
- Model 3 Performance: $43,490 (after $7,500 federal tax credit)
The change to Model 3 eligibility comes as the redesigned “Highland” has been delivering in auto markets around the world, though it hasn’t yet become available in North America. However, sightings of the Model 3 Highland in the U.S. seem to indicate that its U.S. launch could be imminent, and some have reported that Tesla could make a related announcement sometime this month.
Despite the Performance variant being the only one of Tesla’s Model 3 trims to remain eligible, many of the automaker’s other vehicles still qualify.
- Model X AWD: $72,490 (after $7,500 federal tax credit)
- Model Y RWD: $36,490 (after $7,500 federal tax credit)
- Model Y LR: $41,490 (after $7,500 federal tax credit)
- Model Y Performance: $44,990 (after $7,500 federal tax credit)
The tax credit has a maximum MSRP on purchases of $80,000 for vans, SUVS and pickups, and another max of $55,000 for other EVs, as can be seen on the IRS website. Additionally, modified adjusted gross income (AGI) can’t exceed $300,000 for married couples filing jointly, $225,000 for heads of households or $150,000 for all other filers.
In certain areas, buyers can stand to gain even more savings, like in Colorado, where new EV purchases are eligible for up to $5,000 in tax incentives that can be stacked with the federal credit.
Currently, the Tesla Cybertruck is not eligible for the federal incentive, and while it’s not clear why, it’s worth noting that the Cyberbeast is above the IRA credit’s MSRP price cap. Meanwhile, it will take some time for the Cybertruck AWD to begin deliveries, though it’s possible that this variant could eventually qualify.
Updated 8:01 p.m. MT: Corrected Model X price after incorrectly listing the pre-tax credit price.
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Tesla’s most wanted Model Y heads to new region with no sign of U.S. entry
Unlike the standard Model Y, the “L” stretches the wheelbase by roughly 150 mm and the overall length by about 177 mm to 4,976 mm. The result is a genuine 2-2-2 seating layout that gives six adults proper legroom and cargo space — a true family hauler without the cramped third-row compromises of many three-row SUVs.
Tesla’s most wanted Model Y configuration is heading to a new region, and although U.S. fans and owners have requested the vehicle since its release last year, it appears the company has no plans to bring it to the market.
According to fresh regulatory filings, the six-seat Model Y L is coming to South Korea with signs indicating an imminent launch. The extended-wheelbase configuration, already a hit in China, just cleared energy-efficiency certification from the Korea Energy Agency, paving the way for deliveries as early as the first half of 2026.
The vehicle is already built at Tesla’s Giga Shanghai facility in China, making it an ideal candidate for the Asian market, as well as the European one, as the factory has been known as a bit of an export hub in the past.
$TSLA
BREAKING: The official launch of Tesla Model Y L in S.Korea seems to be quite imminent.Additional credentials related to Model YL were released today.
✅ Battery Manufacturer: LG Energy Solutions
✅ Number of passengers: 6 people
✅ Total battery capacity: 97.25 kWh… pic.twitter.com/hmy64XYi80— Tsla Chan (@Tslachan) March 6, 2026
It seems like Tesla was prepping for this release anyway, as the timing was no accident. A camouflaged Model Y L prototype was spotted testing on Korean highways the same day the certification dropped. Tesla has already secured similar approvals for Australia and New Zealand, with both markets expecting the larger Model Y in 2026.
Unlike the standard Model Y, the “L” stretches the wheelbase by roughly 150 mm and the overall length by about 177 mm to 4,976 mm. The result is a genuine 2-2-2 seating layout that gives six adults proper legroom and cargo space — a true family hauler without the cramped third-row compromises of many three-row SUVs.
South Korean filings list it as an all-wheel-drive imported electric passenger vehicle with a 97.25 kWh total battery capacity supplied by LG Energy Solution. Local tests show an impressive 543 km (337 miles) combined range at room temperature and 454 km (282 miles) in colder conditions, easing one of the biggest concerns for Korean EV buyers.
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
But for U.S. fans, things are not looking good for a launch in the market.
CEO Elon Musk has been blunt. The six-seater “wouldn’t arrive in the U.S. until late 2026, if ever,” he said, pointing to the company’s heavy bet on unsupervised Full Self-Driving and robotaxi platforms like the Cybercab. With the Model X slated for discontinuation, many families hoped the stretched Model Y would slide into the lineup as an affordable three-row bridge. So far, that hope remains unfulfilled.
For now, South Korean drivers will be among the first buyers outside China to enjoy the spacious, efficient Model Y L. Tesla continues its global rollout strategy, tailoring vehicles to regional tastes while North American customers keep refreshing their apps and crossing their fingers.
The Model Y L proves the appetite for practical, family-sized electric SUVs is stronger than ever. Hopefully, Tesla will listen to its fans and bring the vehicle to the U.S. where it would likely sell well.
Elon Musk
Tesla is ramping up its advertising strategy on social media
Tesla has long stood out in the automotive world for its unconventional approach to advertising—or, more accurately, its near-total avoidance of it. For over a decade, the company spent virtually nothing on traditional marketing.
Tesla seems to be ramping up its advertising strategy on social media once again. Marketing and advertising have not been a major focus of Tesla’s, something that has brought some criticism to the company from its fans.
However, the company looks to be making adjustments to that narrative, as it has at times in the past, as ads were spotted on several different platforms over the past few days.
On Facebook and YouTube, ads were spotted that were evidently placed by Tesla. On Facebook, Tesla was advertising Full Self-Driving, and on YouTube, an ad for its Energy Division was spotted:
Tesla also threw up some ads on YouTube for Energy https://t.co/19DGQMjBsA pic.twitter.com/XQRfgaDKxY
— TESLARATI (@Teslarati) March 9, 2026
Tesla has long stood out in the automotive world for its unconventional approach to advertising—or, more accurately, its near-total avoidance of it. For over a decade, the company spent virtually nothing on traditional marketing.
In 2022, Tesla’s U.S. ad spend was roughly $152,000, a rounding error compared to General Motors’ $3.6 billion the following year.
Traditional automakers averaged about $495 per vehicle on ads; Tesla spent $0. CEOElon Musk’s stance was explicit: “Tesla does not advertise or pay for endorsements,” he posted on X in 2019. “Instead, we use that money to make the product great.”
The strategy relied on word-of-mouth from delighted owners, Elon’s massive X following, viral product launches, media frenzy, and customer referrals. A great product, Musk argued, sells itself. It does not need Super Bowl spots or billboards. Resources poured into R&D instead, with Tesla investing nearly $3,000 per car, far more than rivals.
Tesla counters jab at lack of advertising with perfect response
This reluctance wasn’t arrogance; it was philosophy, and Musk made it clear that the money was better spent on the product. Heavy spending on ads was seen as wasteful when innovation and authenticity drove organic demand. Shareholder calls for marketing budgets were ignored.
The current shift, paid Facebook ads promoting Full Self-Driving (Supervised) and YouTube Shorts offering up to $1,000 back on Powerwall batteries, marks a pragmatic evolution.
These targeted campaigns coincide with the end of one-time FSD purchases and a March 31 deadline for FSD transfer eligibility on new vehicles.
This move likely signals Tesla adapting to scale, as well as a more concerted effort to stop misinformation regarding its platform. As EV competition intensifies and the company bets big on robotaxis and energy storage, pure organic buzz may not suffice to hit adoption targets. Selective digital ads allow precise, cost-effective reach without abandoning core principles.
If successful, it could foreshadow measured expansion into marketing, boosting high-margin software and home energy revenue while preserving Tesla’s innovative edge. But, it’s nice to see the strategy return, especially as Tesla has been reluctant to change its mind in the past.
News
Tesla Model Y outsells everything in three states, but Ford dominates
The Model Y’s success here highlights accelerating mainstream adoption of electric SUVs, which offer spacious interiors, impressive range, rapid acceleration, and low operating costs.
The Tesla Model Y was the best-selling vehicle in three different states in the U.S. last year, according to new data that shows the all-electric crossover outsold every other car in a few places. However, Ford widely dominated the sales figures with its popular F-Series of pickups.
According to new vehicle registration data compiled by Edmunds and visualized by Visual Capitalist, the Ford F-Series, encompassing models like the F-150, F-250, F-350, and F-450, claimed the title of best-selling vehicle in 29 states.
This dominance underscores the pickup truck’s unbreakable appeal across much of the country, particularly in rural, Midwestern, Southern, and Western states, where towing capacity, durability, and utility for work or recreation remain top priorities.
The Tesla Model Y is the best-selling vehicle in California, Washington, and Nevada
How many states will it dominate next year? https://t.co/ERyoyce42D
— TESLARATI (@Teslarati) March 9, 2026
The F-Series has held the crown as America’s overall best-selling vehicle for decades, a streak that continued strong into 2025 despite broader market shifts.
Yet, amid this truck-heavy reality, Tesla made a notable breakthrough. The Model Y emerged as the top-selling vehicle, not just the leading EV, but the outright best-seller in three key states: California, Nevada, and Washington.
These West Coast strongholds reflect regions with robust EV infrastructure, high environmental awareness, generous incentives, and tech-savvy populations. In California alone, nearly 50 percent of new vehicle registrations were electrified, far outpacing the national average of around 25 percent.
The Model Y’s success here highlights accelerating mainstream adoption of electric SUVs, which offer spacious interiors, impressive range, rapid acceleration, and low operating costs.
Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row
Elsewhere, Japanese crossovers filled many gaps: Toyota’s RAV4 and Honda’s CR-V topped charts in several urban and densely populated Northeastern and Midwestern states, where fuel efficiency, reliability, and family-friendly features win out over larger trucks.
While Ford’s broad reach shows traditional preferences persist, at least for now, Tesla’s Model Y victories in high-population, influential states signal a gradual but undeniable transition toward electrification. As charging networks expand and battery technology improves, more states could follow the West Coast’s lead in the coming years.
This 2025 map captures a pivotal moment: pickup trucks still rule the majority, but EVs are carving out meaningful territory where consumer priorities align with sustainability and innovation. The road ahead promises continued competition between legacy giants and electric disruptors.
Tesla’s most wanted Model Y heads to new region with no sign of U.S. entry
Tesla is ramping up its advertising strategy on social media
