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These Tesla Vehicles Get an Instant $7,500 Rebate Off the Purchase Price: There Are Two That Don't

You can get an instant $7,500 tax credit on these Tesla vehicles in 2024. However, there are two vehicles that don't get this rebate.
These Tesla Vehicles Get an Instant $7,500 Rebate Off the Purchase Price: There Are Two That Don't

$7,500 Instant Rebate/Tax Credit Off These Tesla Vehicles

The following Tesla vehicles in the U.S. will get an instant $7,500 tax credit off the purchase price:

  • Model 3 Performance
  • Model Y RWD
  • Model Y Long Range
  • Model Y Performance
  • Model X Long Range

The AWD version of the Cybertruck, when it is released later in 2024, will also qualify for the $7,500 rebate. This is because it will be less than $80,000, which qualifies it for the U.S. tax credit as an EV truck.

However, there are two vehicles that will not get this credit. The reason they won't get this credit is that their batteries are currently sourced from outside the U.S.

UPDATE: This $7,500 tax credit is now supposed to be instant or "point of sale" which means at the time of purchase. Tesla appears to be factoring it in now, like so (Performance Model 3 As An Example):

Point of sale tax credit

As of 1/2/2024, even though this tax credit is listed on the order, it is not factored in on the invoice. I will update as soon as I get word that the point of sale has actually gone live.

The requirements are:

  • Battery component sourced from foreign entity of concern (can't be true)
  • Critical minerals sourced from foreign entity of concern (can't be true)
  • Percentage of battery components assembled in North America: 60%
  • Percentage of critical minerals sourced from North American or a U.S. free trade partner: 50%

Unfortunately for Tesla, the Model 3 Long Range, and the Model 3 RWD do not qualify for these requirements. This makes the Tesla Model 3 Performance less expensive than the Model 3 Long Range.

Tesla is likely going to do something - and do it fast, to remedy this situation and make the Model 3 Long Range and Model 3 RWD back to being cheaper than the Model 3 Performance.

I think Tesla isn't going to let this be this way for very long. It's going to do something about it, and soon.

You May Also Be Interested In: "This Was A Poker Move For the Ages" Says Dan Ives on Tesla and Elon Musk When Tesla Cut Prices and Went After Volume

When Will Tesla Get the Model 3 RWD and Long Range Back to the $7,500 Tax Credit

Tesla is going to have to do something about the Model 3 RWD and Long Range vehicles. They cannot be in the situation they are because these will not be purchased as much without the $7,500 rebate. This is a U.S. tax credit for EVs.

There are multiple options for Tesla to combat this, they are:

Getting the Model 3 Highland in the U.S. is the first thing Tesla should do. This is an improved version of the Model 3 RWD and Model 3 Long Range vehicles. This will make the vehicle more appealing

Tesla has a lithium refinery being built in Texas, and Tesla needs to accelerate building its own batteries in the U.S. It should not rely on CATL in China and other battery manufacturers.

Tesla should immediately raise the price of the Model Y Long Range and Model Y Performance by $2,000

Tesla should immediately lower the price of the Model 3 RWD and Model 3 Long Range by $1,000.

Once these are all done, things should equalize. At the point Tesla gets U.S. batteries, it can raise the price of the Model 3 vehicles that had prices lowered.

In Other Tesla News: Elon Musk Says, "He Is Utterly Wrong" On Ross Gerber's Comment That "Less and Less People Are Buying Tesla Cars Because of Elon's Behavior"

What do you think about the instant rebate for Tesla vehicles being $7,500? Should Tesla resolve the Model 3 vehicles not getting the rebate?

Share this article with friends and family and on social media - or leave a comment below. You can view my most recent articles here for further reading. I am also on X/Twitter where I post more than just articles daily, as well as LinkedIn! Thank you so much for your support!

Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

Image Credit: Tesla, Screenshot

Article Reference: Sawyer Merritt

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