--- title: "Tesla Model 3 KBB Values Skyrocket After Federal Tax Credits Slashed: Report" description: "Model 3 owners have taken to social media to share their new, 'higher' private party values." date: "2019-01-23" modified: "2019-01-23" authors: - name: "Jerry Perez" job_title: "Deputy Editor" link: "https://www.thedrive.com/authors/jerry-perez" url: "https://www.thedrive.com/news/26136/tesla-model-3-kbb-values-skyrocket-after-federal-tax-credits-slashed-report" categories: - "Car Tech" - "Electric Vehicles" - "News" - "News by Brand" - "Tesla News" tags: - "compact" - "Electric Vehicle" - "Elon Musk" - "KBB" - "model 3" - "sedan" - "tax credit" - "Tesla" --- # Tesla Model 3 KBB Values Skyrocket After Federal Tax Credits Slashed: Report ![]() *\www.thedrive.com\* Late last year Tesla announced that it'd become the first automaker to surpass the 200,000-vehicle mark the Federal Government imposed on automakers eligible to offer customers a $7,500 federal tax credit. As of Jan. 1, 2019, customers who buy any Tesla vehicle [will only receive a $3,750 federal tax credit](), which according to some, has made their KBB resale values go up. Several owners of Model 3 sedans, arguably Tesla's best-selling vehicle, have taken to social media and enthusiast forums to share their recent findings. In a nutshell, several folks claim that thanks to the recent reduction of the federal tax credit, their vehicles are now worth more. The premise is that because the "barrier" to acquire a [Model 3 is now considerably higher](), residual values of vehicles that initially received the $7,500 credit have been increased to match those of current Model 3s. As this tweet by "Steve Jobs" (obviously a parody account) below claims, the "private party value" assigned by [KBB]() to that specific Model 3 is now $49,293, when the fake Jobs claims it was $47,000 prior to the tax credit kerfuffle. https://twitter.com/\_/status/1087855798573625344 Of course, fake Jobs doesn't disclose what year his Model 3 is, whether it's the performance model, rear-wheel or all-wheel drive, and the most important variable when it comes to a used vehicle: mileage. We took the time to hop on KBB to try to recreate the scenario, although we obviously hadn't done this prior to the tax credit slashing, so we can't see for our own eyes that a particular Model 3 is worth more today than it was a month ago. ![message-editor%2F1548267395888-teslakbb.jpg]() *Private party value for a black 2018 Tesla Model 3 RWD with 10,000 miles, no enhanced Autopilot, in "very good condition.", *KBB** According to our findings, a 2018 Tesla Performance AWD with Autopilot has a private party value of $65,129, while the same build in rear-wheel-drive without the Performance package comes in at $50,947. Take away the [enhanced Autopilot]() option and the value drops to $47,310. All pricing scenarios are based on a 2018 Tesla Model 3 with 10,000 miles and in "very good condition." It'll be interesting to see how this tax credit situation affects the used market for Tesla vehicles, especially as in just five months' time the federal tax credit will drop from $3,750 to just $1,875 and then it will outright disappear six months after that. ## Author Jerry is responsible for upholding The Drive's ethos as an audience-first, enthusiast-driven car blog that serves up industry-leading news, reviews, culture, and motorsport coverage. Overseeing a staff of writers and editors from his home base in Indianapolis, he helps curate the site's daily rundown, as well as its medium- and long-term content strategies. Jerry joined The Drive in 2018 as a writer and worked as news editor and managing editor before becoming the deputy in 2023. As a lifelong car enthusiast and racing fan, Jerry believes that all cars are cool, but the people behind the machines are even cooler. This belief often gives The Drive a slightly different focus from most other car sites, where we explore the humanity behind the machines. When he's not obsessing over the day's biggest stories or hanging out at a race track, Jerry can be found behind the wheel of a car, most likely sharing a laugh with his teenage son or daughter. ### Author social links [Instagram]()