

News
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.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
Elon Musk
Elon Musk teases previously unknown Tesla Optimus capability
Elon Musk revealed over the weekend that the humanoid robot should be able to utilize Tesla’s dataset for Full Self-Driving (FSD) to operate cars not manufactured by Tesla.

Elon Musk revealed a new capability that Tesla Optimus should have, and it is one that will surely surprise many people, as it falls outside the CEO’s scope of his several companies.
Tesla Optimus is likely going to be the biggest product the company ever develops, and Musk has even predicted that it could make up about 80 percent of the company’s value in the coming years.
Teasing the potential to eliminate any trivial and monotonous tasks from human life, Optimus surely has its appeal.
However, Musk revealed over the weekend that the humanoid robot should be able to utilize Tesla’s dataset for Full Self-Driving (FSD) to operate cars not manufactured by Tesla:
Probably
— Elon Musk (@elonmusk) October 5, 2025
FSD would essentially translate from operation in Tesla vehicles from a driverless perspective to Optimus, allowing FSD to basically be present in any vehicle ever made. Optimus could be similar to a personal chauffeur, as well as an assistant.
Optimus has significant hype behind it, as Tesla has been meticulously refining its capabilities. Along with Musk’s and other executives’ comments about its potential, it’s clear that there is genuine excitement internally.
This past weekend, the company continued to stoke hype behind Optimus by showing a new video of the humanoid robot learning Kung Fu and training with a teacher:
🚨 Some have wondered if this is ‘staged’ or if Optimus is teleoperated here
Elon Musk said this is completely AI https://t.co/N69uDD6OVM
— TESLARATI (@Teslarati) October 4, 2025
Tesla plans to launch its Gen 3 version of Optimus in the coming months, and although we saw a new-look robot just last month, thanks to a video from Salesforce CEO and Musk’s friend Marc Benioff, we have been told that this was not a look at the company’s new iteration.
Instead, Gen 3’s true design remains a mystery for the general public, but with the improvements between the first two iterations already displayed, we are sure the newest version will be something special.
Investor's Corner
Cantor Fitzgerald reaffirms bullish view on Tesla after record Q3 deliveries
The firm reiterated its Overweight rating and $355 price target.

Cantor Fitzgerald is maintaining its bullish outlook on Tesla (NASDAQ:TSLA) following the company’s record-breaking third quarter of 2025.
The firm reiterated its Overweight rating and $355 price target, citing strong delivery results driven by a rush of consumer purchases ahead of the end of the federal tax credit on September 30.
On Tesla’s vehicle deliveries in Q3 2025
During the third quarter of 2025, Tesla delivered a total of 497,099 vehicles, significantly beating analyst expectations of 443,079 vehicles. As per Cantor Fitzgerald, this was likely affected by customers rushing at the end of Q3 to purchase an EV due to the end of the federal tax credit, as noted in an Investing.com report.
“On 10/2, TSLA pre-announced that it delivered 497,099 vehicles in 3Q25 (its highest quarterly delivery in company history), significantly above Company consensus of 443,079, and above 384,122 in 2Q25. This was due primarily to a ‘push forward effect’ from consumers who rushed to purchase or lease EVs ahead of the $7,500 EV tax credit expiring on 9/30,” the firm wrote in its note.
A bright spot in Tesla Energy
Cantor Fitzgerald also highlighted that while Tesla’s full-year production and deliveries would likely fall short of 2024’s 1.8 million total, Tesla’s energy storage business remains a bright spot in the company’s results.
“Tesla also announced that it had deployed 12.5 GWh of energy storage products in 3Q25, its highest in company history vs. our estimate/Visible Alpha consensus of 11.5/10.9 GWh (and vs. ~6.9 GWh in 3Q24). Tesla’s Energy Storage has now deployed more products YTD than all of last year, which is encouraging. We expect Energy Storage revenue to surpass $12B this year, and to account for ~15% of total revenue,” the firm stated.
Tesla’s strong Q3 results have helped lift its market capitalization to $1.47 trillion as of writing. The company also teased a new product reveal on X set for October 7, which the firm stated could serve as another near-term catalyst.
Elon Musk
Elon Musk’s xAI becomes Memphis’ 2nd largest taxpayer in just one year: report
Elon Musk’s artificial intelligence startup, xAI, is reshaping Memphis’s economic landscape.

Elon Musk’s artificial intelligence startup, xAI, is reshaping Memphis’s economic landscape. In just twelve months, the company has become the city and county’s second largest taxpayer.
The update was related in a report from The Wall Street Journal.
Memphis’ second-largest taxpayer
xAI is currently transforming a defunct Mississippi power plant into a crucial hub for AI, supplying electricity to its Colossus supercomputer cluster and its successor, Colossus 2. Together, the Colossi supercomputers will host more than half a million Nvidia chips that would be used for the development and improvement of Grok, xAI’s large language model.
The buildout has injected billions into the region, making xAI one of Memphis’s most significant private investors and a symbol of the city’s high-tech aspirations. Bill Dunavant III, a Memphis businessman who sits on the board of directors of the city’s chamber of commerce, highlighted xAI’s contribution to the city’s economy in a comment to the WSJ.
“In one year, xAI has become the second largest taxpayer in the city and county after FedEx,” he said. A spokesman for the Greater Memphis Chamber of Commerce has also stated that xAI has demonstrated “substantial economic commitment to our region, without any tax incentives.”
Not without controversy
Despite the economic boost, xAI’s footprint has drawn scrutiny. The company’s natural-gas-powered turbines are expected to consume a substantial amount of water and electricity. Critics have also expressed worries about pollution and increased utility costs, though others see Musk’s wastewater recycling plans and cleanup initiatives as meaningful offsets.
As per the WSJ, xAI’s positioning in the market may be quite different than what Musk is typically used to, considering that the CEO tends to become a first mover in key industries, such as the EV segment with Tesla and private spaceflight with SpaceX. With xAI, however, he is catching up to competitors, the most notable of which is a company he co-founded, OpenAI, and its ubiquitous large language model, ChatGPT.
-
Elon Musk2 weeks ago
Tesla FSD V14 set for early wide release next week: Elon Musk
-
News1 week ago
Elon Musk gives update on Tesla Optimus progress
-
News2 weeks ago
Tesla has a new first with its Supercharger network
-
News2 weeks ago
Tesla job postings seem to show next surprise market entry
-
News2 weeks ago
Tesla makes a big change to reflect new IRS EV tax credit rules
-
Investor's Corner1 week ago
Tesla gets new Street-high price target with high hopes for autonomy domination
-
Lifestyle1 week ago
500-mile test proves why Tesla Model Y still humiliates rivals in Europe
-
News1 week ago
Tesla Giga Berlin’s water consumption has achieved the unthinkable