In a major announcement, Tesla has unveiled significant changes to the tax incentives for its popular Model 3, resulting in a considerable reduction in pricing. Previously, only the Model 3 Performance qualified for the full tax credit of $7,500, while the Model 3 Rear-Wheel Drive and Model 3 Long Range received only half that amount. However, Tesla has now made all three trim levels eligible for the full tax credit, leveling the playing field, Teslarati reported today.
To ensure availability of vehicles that qualify for the full tax incentive, Tesla has reserved models with China-made batteries for markets outside the United States. This strategy was evident as the company recently started shipping Model Ys from China to Canada. By using North American-produced battery cells and vehicles, in line with the Inflation Reduction Act set forth by the Biden Administration, Tesla aims to maximize government tax credits for customers.
These adjustments in pricing, driven by the revised tax credits, have made the Model 3 Rear-Wheel Drive the most affordable Tesla vehicle, with a price just above $30,000. Moreover, when factoring in local incentives, the cost of the Model 3 RWD can even dip below $30,000, making it one of the most budget-friendly electric vehicles available.
The Model 3 Long Range, on the other hand, will now be priced well below $40,000, providing consumers with a more accessible option for an extended range electric vehicle.
It's important to note that these prices include potential savings that Tesla factors in, such as other incentives and estimated gas savings of $2,400. Additionally, Tesla emphasizes that the tax credits are applicable only to new vehicle purchases.
With these significant changes to the tax incentives, Tesla is not only making electric vehicles more affordable but also reaffirming its commitment to sustainability and clean transportation.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.
