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Tesla surprises by gaining full $7,500 tax credit on cheapest Model 3, now starts at $30,000 [$32,740]

Hamartia Antidote

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So now we know why some Canadian Teslas are being switched to made in China. Save the US batteries for the US market.

Tesla surprises the market by confirming that buyers of its cheapest Model 3 now have access to the full $7,500 federal tax credit for electric vehicles instead of the previous $3,750.

It’s unclear how they achieved that, but it does bring the price of the Model 3 down to ~$30,000 for those who can take advantage of the tax credit.

As we previously reported, buyers of new Tesla vehicles had access to a new and updated federal tax credit for electric vehicles since the start of the year.

However, some new requirements limit access or the tax credit amount on certain models.

For the two cheapest versions of the Model 3, buyers only had access to half the credit because the batteries in those vehicles were coming from China.

But Tesla has now updated its [US] online configurator to confirm that all Model 3 trims and configurations have access to the full $7,500 tax credit.

As the base Model 3 retails for $40,240, this change means it now starts at $32,740 after federal incentives. If combined with state incentives available in many markets, it can easily cost less than $30,000.


Model 3
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model3specs.png




Model Y
modelyprices.png

modelyspecs.png
 
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This confirms Tesla is keeping US made LiOn batteries for the US market to take full-advantage of the US tax incentive. Cars in Canada will get the Chinese LFP ones.

Tesla now also importing Model Y Long Range from China into Canada with lower range

Over the last few weeks Tesla has started importing some vehicles built at Giga Shanghai into Canada, including the Model 3 Rear-Wheel Drive (RWD) and Long Range variants, as well as the Model Y Performance. We can now add the Model Y Long Range to that list.

Tesla Model Y (Canada)
modelyspeccanada.png

Canadian (Made in China)
RWD (364km - 394km) = (226miles - 245miles)
LR (460km - 497km) = (286miles - 309miles)
Perf (459km) = (285miles)

US (Made in US)
RWD: N/A
LR (512km - 531km) = (318miles - 330miles)
Perf (488km) = (303miles)
 
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