Tesla adjusts prices for Model Y and Model 3, again
Tesla
Tesla has been changing its vehicle prices in the United States to maintain its profit margins while making its vehicles more accessible to buyers. It recently announced further changes, marking the third price adjustment to some cars this year alone, and we are only in February.
Tax Credit Changes
The Model Y is now eligible for the $7,500 US tax credit, thanks to the Internal Revenue Service's latest update of electric vehicles eligible for the program. The tax credit is now available on all Model Y variants, resulting in a price hike for the Model Y Long Range and Performance trims. However, the automaker has also lowered the price of the entry-level Model 3, making it more affordable for buyers.
The Model Y Long Range saw a $1,500 increase from $53,490 to $54,990. Meanwhile, the Model Y Performance variant also experienced a price increase of $1,000, going from $56,990 to $57,990. This move is the third time that the Model Y has undergone a price change in the past month, with Tesla having originally decreased the price across its lineup in early January.
Price Changes for Model 3
The entry-level Model 3 Rear-Wheel Drive variant experienced a $500 price decrease, going from $43,990 to $43,490. However, there has been no change to the price of the Model 3 Performance, which remains at $53,990.
While this seems erratic to some, consumers should remember the days before Tesla when the price of vehicles was a mystery. Remember the days of buying from legacy brands inside a dealership with a salesperson who had to run the numbers past his manager? The cost of cars was changing daily or hourly, and the public wasn't aware.
Tesla Has Room to Adjust
An infographic courtesy of the Visual Capitalist made the rounds on Twitter, showing Tesla's healthy profit margin. Using Reuters and 2022 third-quarter information, Tesla's net profit for a vehicle is $9,574, while Ford is losing $762 per EV sold. The numbers show that Tesla has a lot of room to make further price adjustments if dictated by the market.
Based on Q3 2022 data, Tesla has a healthy profit margin, allowing them to make large adjustments to prices
Visual Capitalist
Tesla's recent price changes are helping with its profit per vehicle while also making its cars more accessible to a broader range of consumers. Despite the slight price increases for the Model Y, it remains eligible for the US tax credit, making it an attractive option for those looking for an electric vehicle. Meanwhile, the lower price for the Model 3 Rear-Wheel Drive makes it a more affordable option for those looking to switch to an electric car.
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
Tesla has finally launched a tow package for the refreshed 2024+ Model 3 in North America. While Tesla offered the tow package in the European and Asia-Pacific markets, this is the first time it has been made available in North America.
Until today, owners have had to use third-party hitch options, which do not support Tesla Tow Mode support or other features and can void your warranty.
Tow Package
The new package includes a high-strength steel tow bar, with the standard 2” receiver and 7-pin connector. As the package enables Tow Mode, the full trailer harness is also part of the installation.
As per Tesla’s specifications, this hitch supports towing up to 2,200 lbs (998kg), which is lower than the Model Y, Model S, and Model X, whose hitch supports up to 3,500 lbs (1,587 kg). You’ll need a 2” hitch and a ball of your choice to get towing with this new receiver, which neatly tucks away underneath a panel that’s accessible via two plastic bolts, similar to the rest of Tesla’s lineup.
The tow package neatly tucks away when not in use.
Not a Tesla App
You can purchase the Model 3 Tow Package for $1,300 USD or $1765 CAD on the Tesla store or through your Tesla app. Installation is included in the price, and the parts are shipped directly to your local Tesla service center, where they’ll be installed. However, delivery can take one to two weeks.
As a note, this package is only compatible with the 2024+ Model 3 RWD and AWD. The Performance model is not compatible, likely due to the larger rear motor's size.
The total package price also includes shipping to your local Tesla Service Center. In addition, Tesla will enable the config changes that will allow you to use Tow Mode. The entire process takes between 2 to 4 hours, depending on the scope of work, as some Model 3s will require additional harness wiring.
It’s nice to see Tesla finally adding this much-missed feature to the North American Model 3, as many customers have had to use third-party solutions up to this point. Now, anyone can tow light loads with the refreshed Model 3 while also keeping their vehicle under warranty and taking advantage of Tow Mode.
Tesla has partnered with XPEL, one of the leading manufacturers of automotive tints, for an OEM-approved window tint. Previously, Tesla did not approve window tints on its vehicles and had even denied warranty claims for window issues if the windows were tinted.
Over the past year, Tesla Service has stopped denying warranty claims for cracked windows caused by excessive motor force, factory misalignments, or other minor issues — even when window tints are applied.
XPEL / Tesla Partnership
With this partnership, Tesla owners can find window tints directly through the Tesla app, just like they’d find any other Tesla accessory. The difference is that the purchase is completed on XPEL’s website instead of through the Tesla app.
Tesla is essentially promoting the service and presumably making it an approved product. However, the Tesla owner also benefits from having a better warranty instead of just going through XPEL directly.
XPEL offers two official tints for all Tesla vehicles, including the Cybertruck - its Prime XR+ and Prime XR lines. The best part is that XPEL and Tesla’s combined warranty covers the cost of reinstallation if the glass is damaged under Tesla’s vehicle warranty, which means you won’t have to pay anything additional to get your tint replaced.
You can check out the official specifications of the two tint options below.
Prime XR +
Prime XR
Infrared Heat Rejection
Up to 96%
Up to 85%
UV Protection
Blocks 99% of Harmful UV Rays
Blocks 99% of Harmful UV Rays
Glare Reduction
Up to 95% Glare Reduction
Up to 95% Glare Reduction
Technology
Dual-Layer Nano Ceramic
Single-Layer Nano Ceramic
Vehicle tints, like the ones XPEL offers, have numerous advantages. They reduce cabin heat, block UV rays, minimize glare from external light sources, and increase privacy.
The order is placed through XPEL’s website, and then you will be referred to your local installer. They will conduct the installation, and then you’re set and ready to go - no payment is needed from the installer. The process takes between 1-2 business days, including time for the tint to fully set on the glass. This reduces the chance of the window tint peeling prematurely from your frameless window, which automatically lowers and raises when you open and close the door.
For now, this service is only available in the United States, and you can get referred to an XPEL official installer through the button on XPEL’s Partner website here. You can select the shade/tint percentage of your window film on the installation date.
Of note, windshield tinting is not available through the partnership program, but XPEL advises that your local installer can provide you with an additional quote on the day of installation.
![Tesla’s Optimus Is Now Learning by Watching — First Person Today, Third Person Tomorrow [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/2025/optimus_cleaning.png/bd519f7f31d9c3e7e25c2736ee284efb/optimus_cleaning.jpg)
![Andrej Karpathy considers returning to Tesla to work on Optimus [video]](https://www.notateslaapp.com/images/news/2022/karpathy-podcast_300w.jpg)
