All versions of EV giant Tesla Inc‘s (NASDAQ:TSLA) Model 3 is now eligible for an EV tax credit of $7,500.
What Happened: After the U.S. treasury department issued fresh guidance on battery sourcing in March, Model 3’s Rear-Wheel Drive (RWD) and Long Range versions were qualified only for a tax credit of $3,750 given that its batteries come from China. The Performance range, however, was eligible for a full tax credit.
However, Tesla has now updated their website that all new Model 3 vehicles in the U.S. qualify for full EV tax credit of $7,500. Tesla and its CEO Elon Musk also retweeted a Twitter post flagging the change by Tesla investor Sawyer Merritt.
“Hopefully lots of ppl become aware of how affordable the Model 3 is. With the amount of standard tech it comes with, it’s a great deal,” Merritt wrote.
Why It Matters: While the Model 3 RWD version is priced at $40,240, Long Range starts at $47,240 and Performance at $53,240. With the incentives, Model 3 now starts at $32,740.
As per the guidelines issued by the Treasury in March, the EV tax credit amount will depend on whether the vehicle meets the critical mineral and/or battery component requirements. If a vehicle meets both requirements, it may qualify for the full $7,500 credit.
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