Tesla is finally doing right by its domestic market: the brand-new Model 3 Performance comes in its best form in the US and the US only. Canada, Australia, European markets, and Asian countries get a slightly different electric sedan that's not as good. Here's what you need to know.
The 2025 Tesla Model 3 Performance is a dual-motor sedan priced at $52,990 before tax, fees, and incentives. Its manufacturer-estimated range is 296 miles (476 kilometers), and its curb weight is 4,054 lb (1,839 kg). An enhanced dual-motor powertrain allows the EV to develop 510 hp and 547 lb-ft (741 Nm) of torque. The world's most valuable automaker also added a few chassis and interior upgrades that make this sedan a very attractive proposition.
Although miles apart in terms of interior materials and fit-and-finish quality, the BMW i4 M50 develops 26 hp more. Sadly, that won't do much for the Bavarians because their sedan is almost 1,000 lb (454 kg) heavier than Tesla's latest fighter and $16,710 costlier. Moreover, when both ride on 20-inch wheels, the revised Model 3 Performance should be able to drive an extra 69 miles (111 kilometers) on a single charge.
So, Tesla's newest EV is shaping up to become a sales champion. Many netizens have already said on various platforms that they rushed to place an order right as the marque's online platform updated.
But it's not such a clear-cut scenario for everyone across the globe. Even though the updated Model 3 debuted everywhere in early September 2023 except in North America, now the tide has changed. Tesla decided to give Americans a much more capable Model 3 Performance.
In other parts of the world (Canada included), the new all-electric high-performance sedan will put out 460 hp and 533 lb-ft (723 Nm) of torque. That's 50 hp and 14 lb-ft (19 Nm) less than what the EV will be capable of in the US.
In true Tesla fashion, the brand doesn't explain why there's such a peak power difference. However, we believe it's related to the high-voltage battery.
Photo: Tesla
In the US, the EV tax credit rules force automakers that want their zero-tailpipe emission rides to be eligible for the federal perk to use energy storage units that must be made of at least 50% critical mineral extracted or processed in the United States or in any country with which the United States has a free trade agreement in effect. Hint: there's no such agreement with China, the country that has a tight grip on raw battery materials and manufacturing.
Besides the rule about battery composition, its production or assembly must happen in a proportion of at least 60% in Mexico, the US, or Canada. Both these mineral and manufacturing percentages go up by 10 percent on a yearly basis.
Tesla's Model 3 RWD and Model 3 Long Range do not qualify for the EV tax credit. The former uses a lithium iron phosphate (LFP) battery pack supplied by China's CATL, while the latter gets LG Energy's nickel manganese cobalt (NMC) high-voltage energy storage unit – also from China.
The all-new Tesla Model 3 Performance is likely using a revised Panasonic 2170 cell that's made in Nevada. That must be what enables the EV to be eligible for the full EV tax credit.
In other parts of the world, Tesla can comfortably use the battery packs supplied by its Chinese-based partners. And that's why Americans get the best version of the new 2025 Model 3 Performance: the Panasonic battery just has to be better than what LG Energy is supplying Tesla with.
Finally, don't lose hope if you want that 50 hp extra. Tesla has been switching battery packs for quite some time without notice. It wouldn't be weird to see the non-US 2026 Model 3 Performance equipped with the Panasonic battery or an updated LG Energy design.
Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one. Full profile
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