EV giant Tesla Inc (NASDAQ:TSLA) has hiked the starting price on its new Model 3 Performance for the second time within a month of its launch in the U.S. market.
What Happened: The Model 3 Performance is now priced at $54,990 on Tesla's website. The company launched the new variant less than a month ago, ahead of its first-quarter earnings on April 23, with a starting price of $52,990.
Since then, the higher-end variant of the mass-market sedan has been given two successive $1,000 price hikes.
The Model 3 Performance, unlike the other two versions of Model 3, is eligible for a $7,500 federal EV tax credit, taking the effective price for eligible buyers down to $47,490, below even the Long Range version of the vehicle which starts at $47,740.
However, to qualify for the tax credit, the vehicle's price has to be under $55,000, meaning customers cannot opt for any paid exterior paint options. The stealth grey is the only paint option on the vehicle which comes included in the starting price of the vehicle. All others are priced an additional $1000- $2000.
Why It Matters: In January, Tesla introduced the updated Model 3 in the U.S., initially offering two variants: rear-wheel drive and long-range. The Performance variant was conspicuously absent from the listings. However, a company executive affirmed its forthcoming availability.
Price Action: Tesla stock closed 0.5% higher at $174.84 per share on Thursday, according to data from Benzinga Pro. The stock is down nearly 30% year-to-date.
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