Tesla Inc. has moved quickly to improve its battery supply chain, making it possible for all of its Model 3 vehicles to be eligible for federal tax credits in the United States. When combined with other tax reductions, these credits can potentially reduce the price of a Model 3 down to a point where it is lower than the price of a Toyota Camry.
It was just certified by the administration of Vice President Joe Biden that all Tesla Model 3 automobiles are now qualified to receive consumer tax credits of $7,500 for using electric vehicles. In the past, only two of the three different variants of the Model 3 qualified for a portion of the available credits.
Because of the new battery limitations that took effect in April, the tax credit for the Model 3 Standard Range Rear Wheel Drive and the Model 3 Long Range All-Wheel Drive was decreased to $3,750. On the other hand, Tesla revealed on its website a week ago that starting this week, all variants of the Model 3 will once more be eligible for the maximum credit.