Tesla increased the price of the Model 3 Performance by $1,000 on Thursday night from $53,990 to $54,990. This unexpected move occurred after the car’s initial launch in April 23, when it was listed at $52,990 and introduced with a new set of specifications, such as a 163 MPH top speed and a 0-60 MPH acceleration time of just 2.9 seconds. With Tesla’s reputation for making sudden price adjustments, it seems that this latest increase was in anticipation of ensuring the car still qualifies for tax credit, while also presenting buyers with a wider choice of interior colors. The company’s history of fluctuating prices has been a cause of concern for investors, especially when last year Tesla cut prices to drive up demand, which in turn affected profit margins.
The issue of affordability has been at the forefront of these changes as Tesla focuses on making electric vehicles accessible to the average car buyer. The latest price increase of the Model 3 Performance may be the final one, given that it now falls just under the $55,000 limit that qualifies it for the EV tax credit.