Base Tesla Model 3 now also qualifies for $7,500 tax credit

As of right now, the standard Tesla Model 3 is eligible for the maximum federal EV tax credit of $7,500, joining the ranks of the other Product 3 iterations in this regard.

On Friday, Tesla fans brought attention to the fact that when ordering a base Model 3, Tesla suggested that the vehicle could be purchased with a credit score of $7,500. Green Vehicle Studies reached out to the EPA for comment at that time because the list of approved autos on EPA FuelEconomy.gov suggested the product and some of the lineup was only eligible for $3,750.

As of Tuesday, the website was updated to reflect that the entire Design 3 lineup is now suitable for the total amount, despite the fact that the EPA has not yet provided any further confirmation on the matter.

As of June 2023, variants of Tesla vehicles that are eligible for a federal EV tax credit history

When the federal government first listed suitable automobiles in April, only those who owned a Model 3 Efficiency were eligible to claim the full $7,500 incentive. According to FuelEconomy.gov, however, the entire lineup can now be considered appropriate. This lineup consists of the standard Product 3, which has rear-wheel drive, as well as the all-wheel drive Model 3 General Performance and the Model 3 Extensive Range.

Taking into consideration that it was initially proclaimed, this is not the only modification that has been made to the checklist of automobiles that are qualified. Volkswagen confirmed that all 2023 ID.4 products are eligible for the maximum credit score of $7,500 only a few times after that record was made public. This is made possible by a move towards local assembly of automobiles destined for sale in the United States as well as the procurement of batteries from neighbouring locations.

2023 Tesla Model 3

The base Design 3 model currently begins at $41,630 just before the credit, which brings the effective price down below $35,000 for those who qualify based on family income limitations.

Tesla has to have superior procurement of lithium iron phosphate (LFP) cells from a U.S. trade partner rather than China in order to be able to claim the full volume on the basic Product 3, which uses LFP cells. Currently, LFP cells for electric vehicles are not often manufactured in any scale in the United States; nevertheless, a plant in Michigan that makes them is essential to Ford’s programmes for making EVs more affordable.