Tesla’s decision to make all versions of the Model 3 eligible for the full $7,500 federal tax credit is a big win for consumers. It will make the Model 3 even more affordable and competitive and help accelerate the transition to electric vehicles.
Tesla
It needs to be clarified precisely how Tesla met the requirements for the entire tax credit. However, the company may have changed its supply chain to ensure that more of the value of the Model 3’s batteries is added in the United States. It’s also possible Tesla has made some deals with suppliers to increase the value of the battery pack production in the US.
All versions
Whatever the case, Tesla’s decision to make all versions of the Model 3 eligible for the entire tax credit is a win-win for consumers and the environment. It will make the Model 3 more affordable, which will help to increase demand for electric vehicles. And it will help to accelerate the transition to a cleaner transportation future.
As on June 3, 2023, below are the prices of Tesla EV
Tesla EV Prices
| Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
| 2023 Tesla Model 3 RWD 18-inch | $40,240 | +$1,640 | $7,500 | $34,380 |
| 2023 Tesla Model 3 RWD 19-inch | $41,740 | +$1,640 | $7,500 | $35,880 |
| 2023 Tesla Model 3 Long Range AWD 18-inch | $47,240 | +$1,640 | $7,500 | $41,380 |
| 2023 Tesla Model 3 Long Range AWD 19-inch | $48,740 | +$1,640 | $7,500 | $42,880 |
| 2023 Tesla Model 3 Perf. LR AWD 20-inch | $53,240 | +$1,640 | $7,500 | $47,380 |
| 2023 Tesla Model S LR AWD 19-inch | $88,490 | +$1,640 | N/A | $90,130 |
| 2023 Tesla Model S LR AWD 21-inch | $92,990 | +$1,640 | N/A | $94,630 |
| 2023 Tesla Model S Plaid 19-inch | $108,490 | +$1,640 | N/A | $110,130 |
| 2023 Tesla Model S Plaid 21-inch | $112,990 | +$1,640 | N/A | $114,630 |
| 2023 Tesla Model X LR AWD 20-inch | $98,490 | +$1,640 | N/A | $100,130 |
| 2023 Tesla Model X LR AWD 22-inch | $103,990 | +$1,640 | N/A | $105,630 |
| 2023 Tesla Model X Plaid 20-inch | $108,490 | +$1,640 | N/A | $110,130 |
| 2023 Tesla Model X Plaid 22-inch | $113,990 | +$1,640 | N/A | $115,630 |
| 2023 Tesla Model Y AWD (4680) 19-inch | $47,490 | +$1,640 | $7,500 | $41,630 |
| 2023 Tesla Model Y AWD (4680) 20-inch | $49,490 | +$1,640 | $7,500 | $43,630 |
| 2023 Tesla Model Y Long Range AWD 19-inch | $50,490 | +$1,640 | $7,500 | $44,630 |
Here are some additional details about the federal tax credit for electric vehicles:
- The distinction is worth $7,500 for cars with a battery capacity of at least 40 kWh.
- The credit phases out after manufacturers have sold over 200,000 plug-in vehicles.
- Tesla has sold over 200,000 plug-in cars, so the credit is now worth $3,750 for the Model 3 Performance.
- The credit is available to both individuals and businesses.
- The credit can be used to offset your federal income tax liability.
Conclusion
If you’re considering buying an electric vehicle, factor in the federal tax credit. It could save you a significant amount of money.
Source: Inside EVs
