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Tesla urges customers to buy new Mid-Range Model 3 now to get the full tax credit

With the end of the year and the first reduction of the federal tax credit for Tesla buyers coming, the automaker is urging customers to buy new Mid-Range Model 3 now if they want to get the full $7,500 federal tax credit.

Several Model 3 reservation holders who are waiting for the base Model 3 at $35,000 reported to Electrek that they received an email from Tesla this week to urge them to buy the new Mid-Range Model 3 if they want to take advantage of the full credit.

Earlier this month, Tesla introduced a new ‘Mid-Range’ battery pack for the Model 3 starting at $46,000 and with 260 miles of range versus 310 miles for the Long Range battery pack, which was the only one in production until now.

In the email, Tesla states some new delivery timelines for the delivery of the new version of the Model 3:

  • under 4 weeks if you can pick up your car directly from our Fremont factory.
  • 4 weeks for the west coast
  • 6 weeks for central
  • 8 weeks for the east coast

It appears that if ordering right now, Tesla can more or less guarantee delivery of the Mid-Range Model 3 by the end of the year in the US.

For people taking delivery of a Tesla vehicle after December 31, 2018 in the US, the federal tax credit is cut in half down to $3,750.

Here’s the email that Tesla sent to reservation holders:

Hi —-,

We recently introduced a more affordable Model 3 Mid Range Battery option for $34,200 after federal tax credit and gas savings.* As a reminder, the full Federal Tax Credit of $7,500 ends after December 31, 2018.

Current delivery timelines are 4 weeks for the west coast, 6 weeks for central and 8 weeks for the east coast. For delivery under 4 weeks, you can pick up your car directly from our Fremont factory.

Order your Model 3 at

*Taxes and fees not included. Price includes savings of a $7,500 Federal Tax Credit and estimated gas savings of $4,300 over 6 years. Depending on where you live, you can save even more with local incentives.

Tesla | All Rights Reserved | 3500 Deer Creek Rd. Palo Alto CA 94304
Privacy Policy | Unsubscribe

Electrek’s Take

I don’t like how Tesla is presenting the price of the vehicle here. While I think people should certainly account for their potential gas savings when buying an EV, it varies greatly per individual and it should be left out of the main list price.

I would even keep the federal tax credit out of the list price since not every buyer can necessarily take advantage of it. It depends on their federal tax burden.

That said, I think it’s fair for Tesla to try to offer a compromise to the people waiting for the base version and who were counting on the tax credit.

But many of them were also likely already budgeting for the credit and their gas savings when they decided to wait for the $35,000 version of the Model 3.

It’s up to them to decide if they want to pay ~$11,000 more for ~40 more miles of range, a “premium interior” and to likely get a rebate worth $3,750 more than if they wait for the cheaper version next year.

I think many will decide to order. Likely enough for Tesla not to worry about Model 3 demand until next year and at that point, they will expand in Europe.

What do you think? Let us know in the comment section below.

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