Global Courant
Shares of Tesla (TSLA) are up today, up as much as 4% in early trading, reaching highs not seen since early October last year as investor bullishness mounts following news that all Model 3 sedans are now eligible for the full federal electric vehicle tax credits. Tesla stock is on track for its 9th straight day of gains, the longest winning streak since January 2021.
Earlier this week, Tesla announced on its website that all versions of the Model 3 sedan is now eligible for the full federal EV tax credit from $7,500; previously, the less expensive rear-wheel drive (RWD) Model 3 version was eligible for half the amount. The federal government confirmed the announcement to her fueleconomics.gov website.
The federal government’s requirements for the EV tax credit mandate that 40% of critical minerals must be sourced in the US or a country with a free trade agreement, and that 50% by value of battery components must be manufactured or assembled in North America. -America.
While no reason was given for the change, it can be assumed that Tesla updated where it sourced the materials for the Model 3 RWD batteries or assembled the packages. Prior to the announcement, Tesla reportedly used LFP (lithium ion phosphate) battery cells. made by the Chinese CATL.
Tesla Model 3 US Order Page (6/6/2023)
Nevertheless, inclusion of the full federal tax credit means the Tesla Model 3 RWD now costs $32,740 if buyers meet criteria such as income restrictions and MSRP caps ($55,000 for cars; $80,000 for trucks and SUVs).
While $32,740 is a relative deal in a new car market where the average price is around $45,000, more incentives could be given to EVs like the Model 3 that drive prices even lower. The state of New York offers up to $2,000 off electric cars through the Drive Clean rebate for which the Model 3 qualifies.
In California, the state offers an even bigger incentive: a $7,500 tax credit that depends on income and other requirements. By including both federal and California state incentives, the Model 3 drops to $25,240 – which is notes Reuters is less than the cost of a new Toyota Camry (starting price $26,320).
Story continues
In addition, Tesla has local incentives in states such as California for specific vehicles. Tesla is currently offering a $2,410 incentive for the Model 3 RWD in Southern California, meaning the price for this car with all the tax benefits drops to an astonishing $22,830 if the buyer meets all eligibility requirements.
Tesla investors and analysts are looking to its gen-3 vehicle platform to open up a whole new market of mid-range and younger buyers for electric cars. As it turns out, some of those buyers, especially in California, can now get a Tesla on the cheap — at least while the incentives last.
—
Pras Subramanian is a reporter for Yahoo Finance. You can follow him Twitter and further Instagram.
Read the latest financial and business news from Yahoo Finance
