Good news for potential electric vehicle (EV) buyers: Tesla prices are now lower than they have ever been before. The company is now claiming, somewhat confusingly, that its Model 3 qualifies for a tax credit that it previously seemed unqualified to receive.
Electrek reported that, according to the Tesla website, the Model 3 now qualifies for the full $7,500 EV tax credit that was included as part of the Inflation Reduction Act. That brings the base price of the Model 3 down from $40,240 to $32,740 (as of mid-June), with additional state incentives potentially bringing the price below $30,000 (depending on your state), according to Electrek.
If you live in California, for example, a brand new Model 3 could cost as little as $25,240, even less than a new Toyota Camry.
Previously, there was a period this spring when some types of the Tesla Model 3 only qualified for half of the $7,500 federal tax credit. This was due to the fact that their batteries were being manufactured in China instead of North America, as the tax credit specifically stipulates they must be.
It is not clear why the Model 3 now qualifies for the full $7,500 credit. Electrek speculated that either the car now sports North American-made batteries or the specific terms of the tax credit have been altered to allow for Chinese-made batteries. However, neither Tesla nor the United States have yet to confirm one of those guesses.
According to Reuters, "Analysts said Tesla may have tweaked its battery supply chain to meet both battery mineral and battery component requirements for federal subsidy." It is not clear what those tweaks would have been if that is indeed what happened.
But however the deal got done, this is good news for potential EV buyers, who are seeing prices drop yet again, allowing more consumers to purchase their first electric car and move beyond the gas-powered vehicles that have done so much damage to our planet.
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