June 19, 2024
Tesla Model 3 Long Range">Electric vehicle enthusiasts, rejoice! The Tesla Model 3 Long Range is now fully eligible for the lucrative $7,500 federal tax credit in the United States. This makes what was already a stellar vehicle even more attractive to prospective buyers.
The Federal Tax Credit: What You Need to Know
The federal tax credit offers up to $7,500 off at the point of sale for Electric Vehicles (EVs) with batteries made in the United States. Previously, this credit only applied to the Model 3 Performance variant, which initially made it less expensive than the Model 3 Long Range. However, this shift changes the game entirely. Now, the Model 3 Long Range is only a mere $1,000 more than the Model 3 Rear-Wheel Drive (RWD) variant. Unfortunately for the RWD model, it remains ineligible for the credit due to its LFP batteries sourced from CATL in China.
With this new pricing advantage, the Model 3 Long Range is now more financially accessible than ever, priced around $40,000. After applying the tax credit, it becomes substantially cheaper than the average new car in the United States, delivering a high-performance EV experience for an impressively modest price.
Impact on Canadian Buyers
Up north in Canada, there have also been some price adjustments but with mixed results. Tesla recently dropped the Model 3 RWD price by $1,000 CAD. This move was in response to British Columbia tightening the upper limit of their Electric Vehicle rebate MSRP range. The result? The Model 3 RWD now remains the only Tesla vehicle eligible for the refreshed BC rebate, a rarity among dwindling provincial incentives.
However, Tesla Model Y owners in British Columbia weren't as lucky. Due to some quirky classification rules, the Model Y is considered a sedan by the government and is entirely cut off from the additional rebates. The $5,000 federal EV rebate still stands, offering some solace to potential buyers. Interestingly, Tesla continues to be overwhelmingly favored in Canada; they accounted for an astounding 80% of all federal EV rebate applications in 2023, a significant jump from 60% the year prior.
What This Means for Tesla
This reclassification of the Model 3 Long Range as eligible for the federal tax credit in the U.S. proves monumental not just for consumers but also for Tesla's positioning in the competitive EV market. By making such a desirable model more affordable, Tesla solidifies its market dominance while also contributing significantly toward widespread EV adoption.
In summary, whether you're in the U.S. or Canada, the Tesla Model 3 Long Range is becoming an increasingly compelling option. With federal incentives making prices more attractive and provincial adjustments continually shaping the landscape, this year could very well be a tipping point for electric vehicles.