The Model 3's price now begins at $38,990, and all but the new Performance model are ineligible for federal tax credits. Meanwhile, Tesla slashed Model Y prices to just $29,420, qualifying for tax credits, making it more affordable.
Even the most expensive Model 3 buyers can add thousands with options like colors, which add $1,000 or $2,000, and upgraded wheels costing up to $2,000, influencing the final purchase price.
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