In the US, the Model 3 Long Range has now become fully eligible for the $7,500 federal tax credit for EVs.
Federal Tax Credit
The federal tax credit is up to $7,500 USD off at the point of sale, which applies to EVs with batteries originating from the United States. The Model 3 Performance was launched with the EV tax credit, which meant that until now, it was cheaper to purchase than the Model 3 Long Range.
Interestingly, after this change, the Model 3 Long Range is only $1,000 USD more expensive than the Model 3 Rear Wheel Drive, as the RWD model is not eligible for the credit. The LFP batteries in the RWD model are from CATL in China, and thus mark it as ineligible.
At $40,000 USD, the Model 3 Long Range is now an even better deal than before – and is nearly $7,500 less (the amount of the credit), than the average new car in the United States.
Canadian EV Credits
In Canada, Tesla dropped the Model 3 RWD price by $1,000 CAD, in response to the province of British Colombia reducing the upper limit of their EV credit MSRP range. This means that the Model 3 RWD is the only Tesla vehicle that is covered under the new BC rebate – which is one of the few provincial rebates still left standing.
Sadly, as a result of this change, and due to a weird classification gimmick, the Model Y is considered a sedan by the Government of BC and is completely ineligible for the additional rebates – but the $5,000 federal EV rebate still applies.
Tesla vehicles accounted for 80% of federal EV rebate applications in Canada in 2023, marking a net increase since last year at 60%.
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Tesla proves once again that it listens to its customers, and this is a perfect example. Since the Cybertruck’s launch with an adjustable air suspension, owners have been requesting suspension-related features.
One major request is the ability to remotely adjust the vehicle’s height. This could previously only be done from inside the cabin via the touchscreen, but Tesla has now added it to the latest version of the Tesla app. However, using the feature also requires vehicle software 2025.8 or higher.
This software update also brings improvements to the Cybertruck’s steer-by-wire system, which is set to come to future Tesla models. Unlike traditional rack-and-pinion steering, steer-by-wire is not directly connected to the wheels like other vehicles, and “road feel” does not carry through to the steering wheel. Instead, Tesla implements software-driven wheel feedback, which is being improved in this update.
Remote Height Adjust
Now, as of Tesla software update 2025.8 and Tesla App V4.42.5, Cybertruck owners can remotely adjust the height of their Cybertruck through the Tesla app. This setting is in the Controls section of the app.
Here, you can adjust to the four pre-set road heights, including High, Medium, Low, and Entry. For now, you cannot adjust to the two Off-Road Mode heights, which are Very High and Extract.
Now, if you don’t own a Cybertruck, you’re probably wondering why so many are asking for this feature. Well, if you want to go off-roading or even want to load something into the bed of your truck, it’s convenient to be able to remotely adjust the height of the car without having to go in it first.
You can also use it to show off the Cybertruck’s massive vertical range of motion - which can go nearly eight inches from Entry to Extract - all without having to hop into the Cybertruck.
Model S and Model X?
This feature could also potentially make its way to the Model S and Model X sometime in the future since both of these vehicles also have an adjustable air suspension. Today, the heights of these vehicles can only be adjusted inside the vehicle.
We’re sure some Model S and Model X owners would love to be able to adjust the suspension remotely, even if they may not have the same use cases — it’s still a nice to have feature.
Steer-by-Wire Improvements
Tesla has improved the Steer-by-Wire feedback and response on the Cybertruck’s yoke. This new update should provide more realistic wheel feedback. The feedback will now adapt to different road surfaces for a better driving experience.
That means the response and feedback of the wheel will now be more precise - and also be varied by what kind of terrain you’re driving on.
More Features
One more thing we’d love to see from Tesla regarding the Cybertruck is the ability to drop just one side of the suspension. This is possible in Service Mode, where you can deflate either the front or rear air tanks, thereby inducing a slant to the vehicle.
This makes loading items even easier, as the bottom of the tailgate is now even closer to the ground. Tesla showed off the feature during the Cybertruck’s initial reveal. While the Cybertruck never arrived with its built-in ramp, we’d still love the ability to dip the truck for easier loading.
Another feature that was supposed to arrive for the Cybertruck was related to Steer-by-Wire. Today, the Cybertruck can steer up to 7 degrees, but the actual hard limit for the rear wheels is somewhere between 10 and 14 degrees. We’d love to see Tesla expand the rear wheel steering limits which will help reduce the Cybertruck’s already tight turning circle.
Four-Wheel Steering gives Cybertruck a tighter turning radius than a Model S
At low speeds, rear wheels rotate opposite to the front wheels—enabling tighter maneuvering around the jobsite, parking lots, etc pic.twitter.com/nxDiRTZKEI
Tesla continues to refine ride comfort, especially with FSD, where it aims to make every drive as smooth as possible. With the new Model 3 Performance, Tesla is introducing a new feature that allows for an even smoother ride while using FSD.
With the 2025.8 update, the vehicle will now automatically switch its suspension setting to Standard when FSD is enabled. This adjustment reduces road feel but improves ride comfort—a worthwhile trade-off while FSD is active.
The release notes state:
“Your vehicle will now automatically transition to Standard Ride & Handling when Autopilot is engaged for a more comfortable drive. This setting is enabled by default. To disable, tap Controls > Dynamics > Use Standard Ride & Handling in Autopilot.”
Dynamic Suspension
On the New Model 3 Performance, Tesla includes a dynamic, adaptive suspension system. While it isn’t an air-ride adjustable suspension like on the Model S, Model X, and the Cybertruck, it is an actively dampened suspension that improves the ride quality.
There are two settings for the dynamic suspension, which can be controlled from Controls > Dynamics > Ride & Handling.
Standard - Adjusts to a wide range of roads and driving styles, providing a fluid yet well controlled ride.
Sport - Provides a firmer, more controlled ride that increases driver engagement and connection to the road.
Many people prefer to drive on Sport as the road feel on the Model 3 Performance is fantastic, and even more so on a track.
FSD Will Use Standard Suspension
Tesla’s FSD aims to provide a comfortable trip from point A to point B, which means that connecting the driver with the road isn’t necessarily a goal here. Instead, as of software update 2025.8, FSD will now default to the Standard suspension setting instead of Sport. If you have Sport enabled, then FSD will switch to Standard when FSD is enabled and switch back to Sport when FSD is disengaged.
Many users will prefer using Standard when on FSD, but switching back and forth between suspension options isn’t feasible, so this is a great addition. However, if you prefer for the vehicle to remain in the Sport setting while FSD is enabled, you can turn off the “Use Standard Ride & Handling in Autopilot” in Controls > Dynamics.
Model S / Model X Setting
This feature for the new Model 3 Performance (2024+) is similar to the automatic ride height controls on the Model S and Model X. By default, these controls will automatically set the Suspension Damping option to Comfort when engaging Autopilot or FSD. Just like with this new setting for the Model 3, you can turn that off in Controls > Dynamics > Adaptive Suspension Damping in Autopilot.
We expect that when the new Model Y Performance is released in the coming months, it’ll also feature a similar setting.
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