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Tesla’s cheapest Model 3 with the 2024 tax credit might surprise you

Credit: Whole Mars Catalog/X

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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:

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  • 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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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.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Cybertruck

Tesla Cybertruck gets long-awaited safety feature

Tesla has announced the rollout of its innovative anti-dooring protection feature to the Cybertruck via the 2026.8 software update.

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Credit: Tesla Asia | X

Tesla is rolling out a new and long-awaited feature to the Cybertruck all-electric pickup, and it is a safety addition geared toward pedestrian and cyclist safety, as well as accidents with other vehicles.

Tesla has announced the rollout of its innovative anti-dooring protection feature to the Cybertruck via the 2026.8 software update.

This safety enhancement uses the vehicle’s existing cameras to detect approaching cyclists, pedestrians, or vehicles in the blind spot while parked. Upon attempting to open a door, if a hazard is detected, the system activates: the blind spot indicator light flashes, an audible chime sounds, and the door will not open on the initial button press.

Drivers must wait briefly and press the button again to override, providing crucial seconds to avoid an accident.

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The feature, also known as Blind Spot Warning While Parked, comes standard on every new Model 3 and Model Y, and is now extending to the Cybertruck. Leveraging Tesla’s vision-based system without requiring new hardware, it represents a cost-effective software solution that builds on community suggestions dating back to 2018.

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This technology addresses the persistent danger of “dooring,” where a driver opens a car door into the path of a passing cyclist or pedestrian.

Tesla implemented this little-known feature to make its cars even safer

Dooring incidents are alarmingly common in urban environments.

According to Chicago data, in 2011 alone, there were 344 reported dooring crashes, accounting for approximately 20 percent of all bicycle crashes in the city, nearly one incident per day.

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While numbers have fluctuated (dropping to 11 percent in 2014 before rising again), dooring consistently represents 10-20 percent of bike-related crashes in major cities.

A national analysis of emergency department data estimates over 17,000 dooring-related injuries treated in the U.S. over a decade, with many involving fractures, contusions, and head trauma, particularly affecting upper extremities.

By automatically intervening, Tesla’s system not only protects vulnerable road users but also safeguards its owners from potential liability and enhances overall road safety.

As cities promote cycling for sustainable transport, features like this demonstrate how advanced driver assistance and camera systems can evolve beyond highway driving to everyday urban scenarios.

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Enthusiastic responses on social media highlight appreciation for the proactive safety measure, with some calling for broader rollout to older models where hardware permits. Tesla continues to push the boundaries of vehicle safety through over-the-air updates, making its fleet smarter and safer over time.

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Elon Musk

Tesla Roadster is ‘sorcery and magic’ and might be worth the wait, Uber founder says

Perhaps the wait will be worth it, especially according to Uber founder Travis Kalanick, who recently teased the Roadster’s potential capabilities based on what he has heard from internal Tesla sources.

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tesla roadster
Credit: Praveen Joseph/Twitter

Tesla is planning to unveil the Roadster in late April after years of waiting. But the wait might be worth it, according to Travis Kalanick, the founder of Uber, who recently shed some light on his expectations for the all-electric supercar.

We all know the Roadster is supposed to have some serious capability. CEO Elon Musk has said on numerous occasions that the Roadster will be unlike anything else ever produced. It might go from 0-60 MPH in about a second, it might hover, it might have SpaceX cold gas thrusters.

However, the constant delays in the Roadster program and its unveiling event continue to send Tesla fans into confusion because they’re just not sure when, or if, they’ll ever see the finished product.

Perhaps the wait will be worth it, especially according to Uber founder Travis Kalanick, who recently teased the Roadster’s potential capabilities based on what he has heard from internal Tesla sources.

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Kalanick said on X:

Musk has said this vehicle is not going to be geared for safety, and that, “If safety is your number one goal, do not buy the Roadster.”

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There has been so much hype regarding the Roadster that it is hard to believe the company could not come through on some kind of crazy features for the vehicle.

Elon Musk just dropped a huge detail on the Tesla Roadster

However, the latest delay that Tesla put on the unveiling event is definitely eye-opening, especially considering it is the latest in a series of pushbacks the company has put on the vehicle for the past several years.

Tesla has made several jumps in the Roadster project over the past few months, as it has ramped up hiring for the vehicle and also applied for a patent for a new seat design.

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The car has been a back-burner project for Tesla, as it has been focusing primarily on autonomy and the rollout of Robotaxi and Cybercab. Additionally, its other vehicle projects, like the Model 3 and Model Y refreshes, took precedence.

Tesla still plans to unveil the Roadster next month, so we can hope the company can stick to this timeframe.

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Cybertruck

Elon Musk clarifies viral Tesla Cybertruck accident with driver logs

Musk has come out to say that the driver logs have already shown that the driver “disengaged Autopilot four seconds before crashing,” in a post on X.

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Credit: Fox Business | Hilliard Law Firm

Tesla CEO Elon Musk has clarified some details regarding the viral Tesla Cybertruck accident with company driver logs, which show various metrics at the time of an incident.

The logs have been used in the past to pull responsibility off of Tesla when the automaker’s Full Self-Driving (Supervised) or Autopilot platforms are blamed for a collision or accident. It appears this will be no different.

On Tuesday, a video of a Cybertruck crashing into an overpass barrier in August 2025 was shared by Fox Business in a story that reported a woman was suing the automaker for $1 million in a liability and negligence case.

In the suit, Justine Saint Amour said that, “Something terrifying happened, without warning, the vehicle attempted to drive straight off an overpass.” Her attorney, Bob Hilliard, said Amour “tried to take control, but crashed into the barrier and was seriously injured (mostly her shoulder, neck, and back).”

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The Tesla Model Y is leading China’s electric SUV segment by a wide margin

Tesla vehicle crashes are widely popular to report by mainstream media outlets because of the sensationalism of the event. Oftentimes, these outlets will include Tesla in the headline, especially because it will pique the interest of the masses, as most who read the story are waiting to see the claim that Autopilot or Full Self-Driving was the culprit of the accident.

However, Tesla has access to the logs of every vehicle in its fleet, which will show the various metrics, like whether either FSD or Autopilot was active, if the accelerator was pressed, the speed, and other important factors.

Musk has come out to say that the driver logs have already shown that the driver “disengaged Autopilot four seconds before crashing,” in a post on X.

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If the logs do show this, which Tesla will likely have to prove in court, the real question would be why did the Amour disengage the suite?

Tesla’s Full Self-Driving suite is still not fully autonomous, meaning the driver cannot pull attention away from the road and must be ready to take over the vehicle at all times.

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It will be interesting to see how this particular case pans out, especially considering the clip that was released by the law firm starts at about four seconds before the collision. Tesla logs have dispelled media reports in the past that have accused the company’s suite of being responsible for an accident, so there will be some major attention on what is proven in this particular case.

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