Tesla claims every new Model 3 is now eligible for a $7,500 EV tax credit in the US

The Tesla Model 3’s starting price — after federal tax credits — could once again drop below the $35,000 mark. Tesla’s website now claims Everyone The new Model 3 is eligible for a full $7,500 federal tax credit in the United States, as those credits were previously halved on April 18 for the entry-level Standard Range and Long Range RWD models.

Here in California, a short drive from Tesla’s Fremont factory, I’ll pay $41,630 before taxes — but only $32,130 after federal and state incentives, assuming Tesla is correct that its cars are now eligible for the full federal credit. are eligible. Depending on your state’s incentives, it can cost as little as $30,000.

The reason why some cars missed qualifying is because their batteries did not meet the sourcing requirements, specify which that 40 percent of their minerals “must be extracted or processed in the United States or a free-trade agreement partner” and 50 percent of their components “must be manufactured or assembled in North America.”

Those percentages grow each year — by 2027, 80 percent of battery minerals and components must meet those requirements for vehicles to be eligible for the credit.

Not every car or family will also qualify for the $7,500 tax credit: You’ll need to live under a certain income, and you can’t stuff too much on a Tesla or it will hit the price cap.