There are four tempting deals available to customers who take delivery of a new Tesla by December 31, 2023 – 6 months of free Supercharging, existing inventory discount, federal tax credit, and state incentives. With some quick math and available information, I assessed whether or not these promotions are worth taking advantage of.
6 Months Free Supercharging
Tesla is offering 6 months of complimentary access to their Supercharger network for new Model 3 and Model Y owners who take delivery by the end of the year. Based on typical Supercharger rates of $0.25-$0.50 per kWh, this could add up to significant savings.
For example, if you drive a Long Range Model Y with a 75 kWh battery pack and 330 miles range, at 37 miles daily (the average American’s commute), you would use about 8.4 kWh per day. Over the course of a month that comes out to about 252 kWh, costing $126 at $0.50 per kWh. Over 6 months the savings from free charging would total $756.
Existing Inventory Discount
In addition to the Supercharging offer, Tesla is providing a discount of around $3,000 to buyers who take delivery from their existing vehicle inventory. This savings is meant to drive inventory turnover and lower holding costs.
However, available information suggests the current Model 3 is probably not worth buying right now despite this one-time discount. A major refresh codenamed “Highland” has already launched globally. The upgraded interior and other improvements make waiting a few weeks for its US launch worthwhile.
Federal Tax Credit
The third promotion is technically not from Tesla, up to a $7,500 federal tax credit for eligible customers based on income limits and vehicle price caps. This could drop in 2024 due to Tesla’s battery sourcing, but you may gain instant rebate at point of sale.
Many states offer additional incentives beyond the federal electric vehicle tax credit. For example:
- California offers a clean vehicle rebate of up to $7,500 on top of the federal credit for qualifying buyers of new zero-emissions vehicles.
- Colorado has a tax credit of up to $5,000 for the purchase or lease of a new electric vehicle.
- Texas provides incentives of up to $2,500 when purchasing or leasing a qualifying electric vehicle.
- Other states like New York, New Jersey, Massachusetts, and Pennsylvania also have state-level electric vehicle incentives and rebates in place. Some states even offer perks like electric vehicle access to HOV (High Occupancy Vehicle) lanes.
Tesla’s end-of-year deals can lead to substantial savings in some situations.
For the Model 3, I believe most buyers are better off waiting a few weeks if possible even though discounts are expiring. The major “Highland” refresh has already been spotted at delivery centers, indicating its US release is imminent. While tempting, a major refresh codenamed “Highland” has already launched globally. The upgraded interior and other improvements make waiting a few weeks for its US launch worthwhile.
However, I would pull the trigger on Model Y purchases before December 31st. The next generation Model Y codenamed “Juniper” is not expected until October 2024, so buyers will have over a year to enjoy the latest tech. The 6 months free charging and inventory discounts make now an ideal time to get a great price on Tesla’s popular SUV.
The calculus is different for the Model 3 versus the Model Y primarily based on the timing of the new product launch. Check out the pictures below to see the new Model 3 Highland.