The base Tesla Model 3 is now eligible for the full $7,500 federal EV tax credit, along with other Model 3 variants.
On Friday, Tesla fans noted that, when building the base Model 3, Tesla later indicated that they were eligible for a $7,500 credit. At that time, EPA FuelEconomy.gov list of Qualified car indicates that that model and certain product lines are only eligible for $3,750, and Green Car Reports has reached out to the EPA for comment.
As of Tuesday, with no further confirmation from the EPA, the website has been updated to indicate that the entire Model 3 lineup is now eligible for the full amount.
Tesla models are eligible for the federal electric vehicle tax credit as of June 2023
When the federal government Eligible vehicle listed initially in April, only those who receive the Model 3 Performance can claim the full $7,500. But now, the entire lineup is eligible, according to FuelEconomy.gov. That lineup includes the basic rear-wheel-drive Model 3 and the all-wheel-drive Model 3 Performance and the Model 3 Long Range.
This is not the only adjustment to the qualifying vehicle list since it was first announced. Just a few days after that list was published, Volkswagen confirmed that all 2023 ID.4 forms are eligible for the entire $7,500 credit. The move to local assembly of vehicles destined for the US market, as well as local sourcing of batteries, allows for that.
2023 Tesla Model 3
The base model 3 currently starts at $41,630 before credit, so this gives it an effective price of less than $35,000 if the buyer qualifies for the household income restrictions.
To be able to claim the full amount on the base Model 3, with lithium iron phosphate (LFP) cells, Tesla had to change the supply LFP . cells with a U.S. trading partner—not China. Currently, LFP cells for electric vehicles are not made in the United States to any size, but a factory in Michigan that produces them is key to Ford’s plans for EV affordability.
