Why The Tesla Model 3 Performance Is A Better Buy Than The Model 3 Long Range

A vehicle must pass many hurdles to qualify for the Inflation Reduction Act’s $7,500 tax credit. According to the current guidelines, the Tesla Model 3 RWD and Long Range models don’t qualify, as their batteries don’t meet all the criteria related to component sourcing. The new Tesla Model 3 Performance does qualify, however. The current rules state that at least 60% of the components used to make the battery pack must be sourced from the USA, and 50% of the critical minerals in the battery must come from the USA or a country with which the US has a free-trade agreement.

This has created a pretty weird scenario where the performance version of a particular model actually costs the same as the mid-spec model. Calling the Long Range model a mid-spec is unfair because it is theoretically aimed at an audience that wants the most range. Still, if you subtract the full $7,500 tax credit from the Model 4 Performance, its MSRP drops to $47,490. That’s just $50 more than the Long Range’s price of $47,740.

This isn’t the only anomaly related to the Model 3 Performance. If you order it with the optional $2,000 Ultra Red exterior, the price will be above the $55,000 limit for sedans. The only color option that doesn’t push the Performance over the limit is the standard Stealth Grey.

It seems the Model 3 Performance is the best option, but before we make that call, let’s study the models a bit closer.

The Benefits Of The Tesla Model 3 Long-Range

2024 Tesla Model 3 Long Range AWD

Model

Model 3

MSRP

$47,740

Engine

Electric

Drivetrain

All-Wheel Drive

Horsepower

425 hp

Torque

475 lb-ft

It’s not hard to guess what makes the Tesla Model 3 Long-Range appealing. It’s right there in the name. The Long-Range is a dual-motor all-wheel-drive sedan with an EPA-estimated range of 341 miles. Thanks to the dual-motor setup, the Long Range is also quicker than the single-motor RWD. The latter will sprint to 60 mph in 5.8 seconds, while the Long Range will get there in 4.2 seconds. If all three models were eligible for the same tax credit, the Long Range would have been the pick of the bunch.

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Tesla Model 3 Vs. Tesla Model 3 Performance: 0-60, Price, Range, And More

Is the new Model 3 Performance worth the extra cost over the standard Model 3?

Unfortunately, since the RWD and Long Range use battery components sourced from China, they are not eligible. The IRA’s strict regulations are in place to encourage more support for the American automotive industry, and it is working. Hyundai is building a massive EV factory in Georgia to ensure that its vehicles qualify for the credit. Still, America is a few steps behind.

China has a history of providing significant government support to the EV sector, with subsidies, tax breaks, and incentives giving it a headstart in the electric car game and leaving much of the world playing catch-up. Missing out on that tax credit is just one of the many growing pains we should expect as we see America establish a more independent EV industry.

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Why The Tesla Model 3 Performance Is So Special

2025 Tesla Model 3 Performance

Model

Model 3

MSRP

$54,990

Engine

Dual-Motor Electric

Horsepower

510 hp

Torque

547 lb-ft

0-60 MPH

2.9 Seconds

Top Speed

163 mph

With the Tesla Model 3 Performance, the American automaker is showing one of the major upsides of going electric. It is one of the ways EVs have ICE cars absolutely licked. But don’t take our word for it. The table below compares the Performance with two iconic German-made compact executive sedans.

Comparing the Tesla Model 3 Performance to other corners of the AWD sports sedan segment, you’ve got the 2024 BMW 3 Series M340i xDrive Sedan in the conventional ICE-powered market and the 2024 Mercedes-AMG C43 4Matic Sedan representing hybrids. Check the specs, and it’s immediately apparent that the Model 3 Performance is not only the best value in the Model 3 lineup but may be the best deal in the sports sedan segment in general.

After the tax credit, you’re looking at a five-figure difference between the Tesla and the BMW. The numbers also favor the Tesla across the board, delivering more than a hundred extra horses over the nearest competitor and shaving a full second off the C43’s 0-60 sprint.

Don’t Let Range Anxiety Put You Off

There’s only one real downside to buying a Model 3 Performance over the Long Range. According to the EPA, the Performance can only cover 303 miles on a full charge. This is barely a grocery trip less than what you’re getting from the Long-Range model, so it’s a marginal sacrifice at best. Even so, let’s take a moment to weigh the pros and cons here.

The range has been a favorite point for EV critics to discuss but consider the numbers. With a 14.5-gallon tank, a 30 MPG RAV4 (America’s top-selling non-pickup passenger vehicle) will get 435 miles out of a full tank, and filling up will only take a few minutes. Using DC fast charging at a Tesla supercharger, the Model 3 Performance should take roughly 30 minutes to go from 10% to full.

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Right off the bat, that tells us that the RAV4 is the smarter option, right? But hold on, the US Department of Transportation Federal Highway Administration tells us that the average American drives 13,476 miles a year, 1,123 miles a month, and 37 miles a day. So, unless you’re planning a week-long road trip and don’t want to make any stops, the Tesla Model 3 is more than up to the task.

This is not to dismiss these criticisms entirely. There are some things that ICE-powered vehicles still do better, and yes, a full tank of gas will typically last you a little longer than a fully charged EV battery. But the difference that this makes in the average driver’s daily life is effectively zilch. And let’s not forget how much easier life is if you have a home charger.

In short, now is the best time to buy a Model 3 Performance. It’s a supercar slayer (at least when it comes to 0-60 mph) that costs around the same as an entry-level BMW 3 Series with AWD.