Interesting new Tesla facts and figures keep popping up from time to time. One such piece of information for potential buyers of the new Tesla Model 3 can be very useful to know before making a buying decision.
The new Tesla Model 3 Highland comes in three different variants. The standard Model 3 RWD, the mid-tier Model 3 Long Range AWD, and the top-end Model 3 Performance.
With the US Federal EV Tax Credit scheme, the prices of the Standard and Long Range Model 3 variants have come very close. The federal tax credit phased out for base Model 3 RWD and Long Range AWD variants at the start of this year.
However, later on, the Long Range Model 3 became eligible once again. The price of the Tesla Model 3 Rear-Wheel Drive (RWD) is $38,990 and it’s not eligible for the federal tax credit.
The price of the Tesla Model 3 Long Range All-Wheel Drive (AWD) is $47,490. Since it’s eligible for the full $7,500 federal EV tax credit, the price drops to $39,990 after deducting it from the cost of the vehicle.
Eligible Tesla electric vehicles get a direct point-of-sale (POS) price deduction of the federal tax credit. This removes the hassle of applying for a tax credit down the road and also gives a direct price discount at the time of vehicle purchase.
So, the Model 3 Long Range AWD variant is just $1,000 more expensive than the base Model 3 RWD. Tesla hasn’t explicitly mentioned it in its online car configurator.
However, if you click/tap the “Customize” link beside the Federal Tax Credit and Gas Savings toggle on the configurator. You can set the gas savings to 0 by putting 1 mile per year in the customization form. This will give you the actual prices after the federal tax credit deduction, not including estimated gas savings.
For the extra $1,000 you get an All-Wheel Drive vehicle with 69 miles of more range. Model 3 RWD comes with 272 miles of range while the Long Range AWD comes with 341 miles.
Apart from the dual-motor drivetrain and increased range, Tesla Model 3 LR AWD also comes with a better sound system than the RWD base variant.
A better All-Wheel Drive drivetrain and increased range is a good bargain for just $1K extra. If I was going to buy a Model 3, I would certainly avail this opportunity.
Tesla Model 3 RWD comes with LFP batteries — which probably is the only advantage the base version of the vehicle has in my eyes. Tesla started shifting the base RWD Model 3 cars to LFP batteries in 2021. China-made Model 3 and Model Y also use LFP batteries from CATL. LFP batteries are long-lasting compared to the 2170 cells (more cycles) and also suffer less from range degradation over time.
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Related Tesla Model 3 and Model Y News
- Tesla (TSLA) launches the 2026 Model Y Standard in Europe with a 534 km range
- Stripped-down affordable Tesla Model Y ‘Standard’ is here (price, range, missing features)
- Tesla teases the more affordable Model Y after it was already spotted a few days ago
- Tesla (TSLA) crushes critics by delivering around ~500k EVs in Q3 2025
- Tesla Model Y Performance is now available in the US (free paint, tow bar, upgraded interior)
- Why you shouldn’t buy a Tesla Model Y Performance, Top Gear’s driving impressions
