Image: Tesla
Tesla is making a aggressive move to dominate the electric sedan market this quarter by slashing financing rates to a near-zero 0.99% APR for the Model 3 in the United States. While the headline rate is a massive drop from the previous 2.99% offer, a look at the fine print reveals a strategic push to move buyers into higher-end inventory.
Effective February 15, 2026, the new 0.99% rate is available for loan terms up to 72 months. However, this promotion is reserved exclusively for “well-qualified” buyers ordering the more expensive trims: the Model 3 Premium RWD, the Model 3 Premium AWD, and the top-tier Model 3 Performance.
The “Standard” Gap: A 4% Interest Penalty
The most striking detail of this new incentive is the exclusion of the entry-level Model 3 Standard (formerly the RWD). While the Premium trims enjoy 0.99% financing, the base Standard model currently carries a much higher interest rate of 5.29% APR (ouch).
For many buyers, this interest gap creates a “pricing paradox.” Because the 0.99% rate applies to the full 72-month term, the monthly payment on a $42,490 Premium RWD can actually end up being lower than the payment on a $36,990 Standard model once the 5.29% interest is factored in. This effectively allows buyers to “upgrade” to the Premium interior and longer range for nearly the same monthly out-of-pocket cost. Now that’s “SMRT” says Homer Simpson.
The Math: How Much Can You Save?
Securing a 0.99% rate over 72 months provides a significant buffer against current market volatility. On a typical $45,000 loan, the difference between 5.29% and 0.99% represents thousands of dollars in interest savings over the life of the loan. This move mirrors a similar successful campaign for the Model Y, as Tesla shifts its focus toward moving high-margin vehicles to bolster its Q1 2026 delivery numbers.
Key Details and Eligibility
To lock in this rate, buyers must place a new order on or after February 15 and provide a down payment covering applicable taxes and fees.
Eligible Trims: Premium RWD, Premium AWD, Performance.
Excluded: Model 3 Standard (Base), Used Vehicles, and Enterprise/Fleet sales.
Term Limit: Up to 72 months (longer terms like 84 months typically carry higher rates).
This promotion appears to be a limited-time effort to stimulate U.S. demand before the end of the quarter. Tesla has not yet announced an official expiry date for the deal. Also, we’re not seeing this 0.99% rate in Canada, so it seems to be limited in the U.S. for now.
