The discovery was initially made by a Tesla code expert known as 'green the only' who noticed a 'soft performance limit' in a recent firmware update.
In Singapore, vehicle taxes are significantly impacted by the Certificate of Entitlement system. One category includes cars with up to 110 kilowatts of power, approximately equivalent to 148 horsepower. This specific Tesla Model 3 now falls into Category A, benefiting from lower tax rates than its more powerful counterparts. However, buyers might note that this model accelerates from 0 to 100 km/h in 8.6 seconds, slower compared to the standard rear-wheel-drive Model 3 that outputs 283 horsepower and accelerates in 6.1 seconds.
The price difference between these two models is minimal, though, with the less powerful variant costing only $371 less than the regular version. This reveals an interesting strategic decision by Tesla to potentially attract buyers sensitive to higher tax brackets without compromising profit margins significantly.
A similar strategy is observed with the Tesla Model Y in Turkey, where the software-limited base model has been adjusted to have less than 160 kW (about 213 horsepower) due to similar taxation laws affecting electric cars exceeding this power threshold.
Interestingly, both limitations—on the Tesla Model Y and Model 3—are imposed through software updates alone; there are no physical differences between them and their higher-power variants. While it's technically possible to remove these limits, doing so would result in legal repercussions.
Despite these regional adjustments, Tesla has expressed no intentions of introducing such power-limited models in markets like the US or Europe. In these regions, car purchase prices are not directly impacted by power ratings thus reducing market demand for lower-powered versions.
Source: InsideEVs
