All it needed was a little help from the Biden administration.
The Tesla Model 3 is set to get even more popular, with the entire lineup now privy to the appealing $7,500 EV incentive. Previously, the entry-level RWD model and the Long Range derivative were only eligible for the $3,750 discount, owing to their battery packs.
How Tesla has achieved this is unclear, as either Tesla has chosen new batteries that are eligible, or the automaker has been able to prove the existing batteries' eligibility, but potential Model 3 buyers can now look forward to even greater deals for the electric vehicle. With the full incentive, the cheapest RWD version can now be purchased for $32,740 – astonishing value for what is, arguably, one of the best EVs on the market.
Similarly, the Model 3 Long Range (capable of traveling 333 miles on a single charge) can now be purchased for a shade under $40,000. Compared to other electric rivals, such as the quietly reintroduced EV6 Light, buying the Model 3 Long Range has become a no-brainer.
The true value star is the RWD variant, though. Depending on which state you reside in, there's every possibility that you could pay less than $30,000 for a Model 3. Of course, there are certain requirements buyers have to meet to take advantage of these great incentives. Buyers have to have an adjusted gross income (AGI) of $300,000 for “married couples filing jointly,” $225,000 for “heads of households,” and $150,000 for “all other filers.”
Should a buyer qualify, they could get a Model 3 RWD for about the same price as an Accord Sport Hybrid ($31,345) or a Camry XLE Hybrid ($33,545).
With such prices, Japanese brands have a real reason to worry. After all, Tesla is fast encroaching on Toyota's leading market share in California. Last year, the Model 3 outsold the Camry in The Golden State. The Model Y also outsold the RAV4.
In recent months, Tesla has sliced prices across the board to remain competitive in a marketplace bustling with talented competition. The Model S and Model X are far more affordable (despite a recent small increase). Elsewhere, the brand reduced pricing for its new inventory units, resulting in some tempting deals.
How will rival companies respond to Tesla's ever-tumbling prices? Ford has gone down a similar route, while GM and Volkswagen have said they will not partake in EV price wars.
BREAKING: @Tesla says ALL new Model 3 vehicles in the US now qualify for the full $7,500 EV tax credit, meaning the Model 3 now starts at $32,740 (with incentives). In some states, you can get it for under $30k.
Before, the RWD and Long Range versions only qualified for $3,750. pic.twitter.com/6K3aW60vse
— Sawyer Merritt (@SawyerMerritt) June 2, 2023
Keyword: Tesla Model 3 Finally Achieves Sub-$35K Status