Tesla has announced that the new Model 3 Long Range (LR) now officially qualifies for the full $7,500 Federal Electric Vehicle (EV) credit in the United States. Previously, only the Rear-Wheel Drive (RWD) and Performance variants qualified for the incentive.
With the federal EV credit applied, this lowers the starting price of the Model 3 LR to just US$39,990, making it one of the most competitively priced long-range electric vehicles on the market. The effective price drops even further, to US$34,990 when taking into account estimated gas savings over a five year period.
Today’s announcement also brings back price balance to the Model 3 lineup in the US, as the LR was priced the same as the Performance variant due to the latter being eligible for the tax credit.
New Model 3 LR now qualifies for the full $7,500 federal tax credit in the US (if eligible)
— Tesla North America (@tesla_na) June 17, 2024
Starts at $34,990 when also factoring in estimated 5-year gas savings → https://t.co/eqpjGuewQ2
It is unclear at this time what changed to make the Model 3 LR eligible for the tax credit. The program has requirements that some of the minerals used in the car’s battery must come from the United States or countries that have trade agreements with the US.
Also, some parts of the battery must be made or put together in North America.
Even though Tesla has announced the Model 3 LR is eligible for the full tax credit, the company has yet to update their online configurator to show this. We expect this to be updated soon.
