BREAKING: Did Tesla Just Kill The Model 3 RWD?!?!?! RoboTaxi Imminent?!?!

Tesla just made some HUGE changes on their offerings. The refresh Model 3 has been quite popular since its release earlier this year. It didn't come without some challenges though.

After being reintroduced as the redesigned Model 3 at the beginning of the year, the Model 3 had only 1 trim that was tax credit eligible, and that was the Performance variant. For the first half of the year, this was the case, until recently when the LR AWD Model 3 became tax credit eligible. This left the RWD Model 3 as the only one that wasn't, and actually made it more expensive to purchase than the LR AWD.

Tesla later added a Model 3 LR RWD to the mix, which shared the same battery as the AWD and was therefore tax credit eligible. So for this whole year now, the standard RWD Model 3 has not been eligible for the tax credit, except through leasing.

With likely hard pressure on the RWD Model 3 demand coming from the LR RWD, coupled with the new expanded tariffs on China battery tech, the RWD Model 3 likely became too expensive to offer at an affordable price, which was already $4k more expensive to purchase after the tax credit.

Tesla has now removed the RWD Model 3 and is only offering the Long Range RWD, LR AWD and Performance Model 3 trims. All 3 trims are tax credit eligible, and in combination with all 3 Model Y trims, now both the Model 3 and Model Y are fully tax credit eligible.

Affordability comes in other forms than just price though. The interest rate deals Tesla was offering last quarter were as low as 1.99% for 60 months on the Model 3 and 1.99% for 72 months on the Model Y. This month, those same terms come in at 5.29%, yielding about $50 more per month on each model.

Also with the removal of the RWD Model 3, the $299/mo lease deal is no longer here as it was for the entry level Model 3 only. Now, at $90/mo more, the Model 3 LR RWD is your cheapest lease option and is $389/mo.

On the bright side, we still have the $1,000 referral offer available and the $1,000 military offer in place. Both of these, when combined with the tax credit, give a buyer almost $10k off the purchase of any new Model 3 or Model Y, assuming you qualify for the tax credit.

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