California Rebates Put Model 3 Cost At $26,790

California is offering an incentive to buy electric vehicles that keeps going up. Right now, you can get a federal and state subsidy putting a Model 3 cost at $26,790.

Rebates in California for EVs

California is offering a $4,500 incentive on any new Tesla or any other battery electric vehicle purchase. This puts the Model 3 and Model Y in the territory of gas cars that are simply not on their level. The final cost of a Model 3 RWD ends up being about $26,790 and the final cost of a Model Y ends up being about $37,590. That's pretty incredible for what you are getting.

Did you know: A Model 3 RWD with LFP batteries is the world's most efficient production vehicle? That is until the Aptera comes out.

Let's take a look at the cost breakdown for this incredible incentive in California. There are even reports that the $4,500 amount is going to increase to $7,500. That would make a $7,500 federal and $7,500 state tax incentive to get an EV.

Model 3 RWD

* Model 3 RWD base price: $42,990
* Federal tax credit: $7,500
* California incentive: $4,500
* 6 year gas savings: $4,200
* Final cost: $26,790

Model Y Long Range

* Model 3 RWD base price: $54,990
* Federal tax credit: $7,500
* California incentive: $4,500
* 6 year gas savings: $5,400
* Final cost: $37,590

The cost of the Model 3 is approaching the Toyota Corolla in this case and it's economically insane not to buy a Model 3 with all these incentives - or a Model Y if you are needing an SUV.

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Rebates Will Only Increase

I think we are going to see states beyond California start to incentivize the purchase of EVs. It makes economic sense. As more and more EVs are bought, they are going to use charging infrastructure and that is where the future is going. Gas stations are going to have to be converted to EV charging stations eventually, in order to stay in business.

Income limits apply for the state and federal tax credits, of course, but most people aren't going to be making $400,000 as a married couple or $200,000 as a head of household.

California is already the number one state in the U.S. for Tesla vehicles being purchased. This is going to only increase now.

I can see California increasing this rebate to $7,500, which would put a Model 3 at a final cost of $23,790. That's insane. It's reaching the level of Tesla's Model 2 vehicle. How can someone not buy this vehicle now?

If I were a legacy automaker right now, I would be panicking as governments and states are moving consumers to purchase electric vehicles. It's only going to accelerate.

What do you think about these rebates for the Model 3 and Model Y - and all EVs? Would you get an EV now?

In Related News: Elon Musk Gives Nod to Model 3 - Project Highland

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla, Screenshot