The facelifted Tesla Model 3 Long Range All-Wheel Drive might be eligible for the $7,500 federal tax credit when purchasing, according to several posts on Reddit from reservation holders who noticed the change in the Tesla mobile app.

The change is not yet reflected on the American automaker’s website, which still lists the Model 3 Performance as being the only version eligible for the incentive when purchasing. The federal tax credit can still be applied to all Model 3 versions when leasing.

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Cheaper EVs from Tesla thanks to the federal tax credit

Thanks to the $7,500 federal tax credit, the longest-range Tesla Model 3 might soon cost just a smidge under $40,000. The change isn't yet reflected on Tesla's website, but several reservation holders went online to show that their vehicles are eligible for the tax break when purchasing.

The updated Tesla Model 3 debuted in Europe and China last year, and North American deliveries began in January. With the $7,500 tax break applied at the point of sale, the price of the Model 3 Performance essentially went down to $47,490, the same MSRP as the Long Range version, making the latter somewhat irrelevant.

Now, however, if Tesla found a way to make the Long Range Model 3’s battery fall under the updated rules of the Inflation Reduction Act, the selling price of the mid-tier EV would effectively go down to $39,990 for people who qualify for the tax credit–just $1,000 more than the base-spec rear-wheel drive version. That would make it a very good deal, indeed.

According to Tesla’s website, to benefit from the tax break–which can be applied at the point of sale–the price of the Model 3 cannot exceed $55,000. This includes “optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees,” as per the company’s online explainer page.

Gallery: 2024 Tesla Model 3 Long Range

Specs-wise, the Tesla Model 3 Long Range All-Wheel drive provides the highest EPA range rating of all trim levels–341 miles on a full charge–while the zero to 60 miles per hour sprint is managed in 4.2 seconds and the top speed is 125 miles per hour.

Meanwhile, the Model 3 Performance boasts a dual-motor, all-wheel drive setup that’s good for over 500 horsepower, a zero to 60 miles per hour sprint time of 2.9 seconds and a top speed of 163 miles per hour. The EPA-rated combined range rating is 303 miles. The Performance also comes with sport seats, adaptive suspension, 20-inch forged wheels and the latest version of the automaker’s driving software that includes Track Mode V3.

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