Tesla Model 3 at 0.99% APR: Why This Financing Deal Changes the EV Math | Taha Abbasi

Tesla just made the most compelling financial argument for going electric that Taha Abbasi has ever seen: a 0.99% APR financing offer on all new Model 3 orders in the United States, applicable across all loan terms. In an era where average new car loan rates hover around 7-8%, this deal fundamentally changes the monthly cost comparison between electric and gas vehicles.

Announced on February 17, 2026, this isn’t Tesla’s first financing promotion, but it’s by far the most aggressive. And as Taha Abbasi breaks down the numbers, it becomes clear that for many buyers, the Model 3 is now cheaper to own on a monthly basis than comparable gas sedans — even before factoring in fuel savings.

The Numbers That Matter

Let’s do the math. The Tesla Model 3 starts at approximately $38,990. At a standard 7.5% APR over 72 months, your monthly payment would be approximately $672. At Tesla’s promotional 0.99% APR over the same term, that drops to approximately $557 — a savings of $115 per month, or $8,280 over the life of the loan.

Now factor in fuel savings. The average American drives 13,500 miles per year. At current gas prices (~$3.50/gallon) and an average sedan fuel economy of 30 MPG, that’s $1,575 per year in gas. The Model 3’s energy cost for the same distance (at $0.13/kWh and 3.8 miles/kWh) is approximately $462 per year. That’s an additional $1,113 in annual savings, or $93 per month.

Combined with the financing savings, a Model 3 buyer is looking at roughly $208 less per month compared to a similarly priced gas sedan at market rates. As Taha Abbasi has previously analyzed, this is the tipping point where EVs don’t just make environmental sense — they make pure financial sense.

Why Tesla Is Doing This Now

The timing is strategic. Tesla is coming off a period of intense competition from Chinese manufacturers like BYD, domestic competitors like the Chevy Equinox EV (which recently saw $10,000 discounts), and a broader market where EV adoption has been slower than projected in certain segments. The 0.99% APR offer is Tesla’s answer: make the financial case so overwhelming that fence-sitters can’t say no.

There’s also the Cybercab factor. With the first Cybercab rolling off the Giga Texas production line this week and consumer sales confirmed for under $30,000 by 2027, Tesla needs to maintain Model 3 momentum while building anticipation for its next-generation vehicle. This financing deal keeps the Model 3 competitive in the interim.

How It Compares to the Competition

Tesla’s 0.99% APR significantly undercuts what competitors are offering. Hyundai’s Ioniq 5 is available at 2.99% APR on select terms. The Chevy Equinox EV, despite its discounts, carries rates around 3.9-5.9% depending on credit tier. Ford’s Mustang Mach-E hasn’t had sub-2% financing in months.

Taha Abbasi notes that Tesla can afford to subsidize financing rates because of its industry-leading margins. Even after recent price cuts, Tesla’s automotive gross margin remains above 17% — significantly higher than legacy automakers’ EV operations, many of which are selling at a loss. This financial strength allows Tesla to use financing as a competitive weapon that others simply can’t match.

The Edmunds Endorsement

The financing deal comes on the heels of the Model 3 winning Edmunds’ Top Rated Electric Car Award for 2026. The publication rated the Model 3 at 8.1 out of 10, calling it “the best Model 3 yet” after its most recent refresh. This combination of critical acclaim and exceptional financing creates a powerful one-two punch in the market.

What Buyers Should Consider

For prospective buyers, Taha Abbasi recommends acting quickly — promotional rates like this rarely last more than a quarter. Key considerations include:

• Credit requirements: The 0.99% rate likely requires excellent credit (740+). Check your score before applying.
• Federal tax credit: The $7,500 federal EV tax credit may still apply depending on your income and the vehicle’s assembly location — verify eligibility at the time of purchase.
• Insurance costs: Tesla insurance is available in many states and can be significantly cheaper than traditional insurers for Tesla vehicles.
• Total cost of ownership: Factor in zero oil changes, minimal brake wear (regenerative braking), and no transmission maintenance.

The bottom line: if you’ve been waiting for the right moment to go electric, Tesla just removed the last financial excuse. At 0.99% APR with fuel savings factored in, the Model 3 isn’t just competitive with gas cars — it’s cheaper. The EV tipping point isn’t coming; for the Model 3, it’s here.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com