Tesla Model 3 Long Range now down to $40,000 with EV tax credit

Tesla has good news for potential EV buyers. The company secured eligibility for the $7,500 federal tax credit for its popular Model 3 Long Range model, currently priced at $47,490. Together with the tax credit, this brings the effective price down to $39,990.

The Model 3 Long Range, known for its impressive range and sleek design, has always been a compelling option for eco-conscious drivers. Now, with the tax credit eligibility, Tesla has made it a viable option for a far greater audience.

The federal tax credit, designed to encourage the adoption of electric vehicles, has become a critical factor in determining their market competitiveness.

The EV tax credit eligibility, and the consequent price reduction for the Model 3 Long Range, has created an intriguing dynamic within Tesla's own lineup. The Model 3 Rear-Wheel Drive, a more affordable variant, remains ineligible for the tax credit due to its use of Chinese-sourced LFP batteries. This has led to a situation where the more premium Long Range model is now only $1,000 more expensive than its lower-standing counterpart, effectively making it the only sensible option in the lineup.

The $40,000 price point for the Model 3 Long Range is a significant milestone, as it undercuts the average price of a new car in the United States by a substantial margin. This affordability, coupled with the environmental benefits and long-term cost savings associated with EVs, could potentially tip the scales in favor of electric transportation for a growing number of consumers.

While Tesla has not officially commented on the specifics of the battery changes that led to the tax credit eligibility, industry analysts speculate that the company has likely made adjustments to the sourcing and composition of the Model 3 Long Range's battery components.

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