Tesla Model 3 Tax Credit Set to Reduce by March-End!

According to Tesla Inc, the $7,500 tax credit that has been in place for their 2023 Tesla Model 3 rear-wheel drive since January will be lowered by March 31. This decision is dependent on guidance that will be provided by the U.S. Treasury Department later this week regarding the sources of battery components.

2023 Tesla Model 3 Exterior Image 2
2023 Tesla Model 3 Exterior Image 2

The credit will still apply for deliveries made before the updated guidance is issued, and the guidance will have an impact on the credit available for certain electric vehicles, based on the sourcing of their batteries.

Tesla has stated that the Treasury Department's instructions regarding the electric vehicle tax credit, which is to be released by March 31, will lead to a reduction in the number of vehicles that qualify for complete or partial credits. Additionally, Tesla has mentioned that the tax credit may only be utilized by individuals who buy the model for their personal use within the United States.

Tesla Model 3 2023 interior image 3
Tesla Model 3 2023 interior image 3

The Treasury announced in February that it would expand the number of electric vehicles (EVs) eligible for up to $7,500 in tax credits from Tesla, Ford Motor, General Motors, and Volkswagen. The decision was made after the Treasury revised its definitions for classifying vehicles.

2024 Tesla Model 3: What You Need to Know

The Tesla Model 3 isn't just another car—it's set the gold standard for electric vehicles for years. Fast forward to 2024, and Tesla's latest take on the Model 3 isn't just a fresh coat of paint. Learn more
Year Body Trim Range Price
2024 Sedan Rear-Wheel Drive 272 $38,990
2024 Sedan Long Range 341 $47,740
2024 Sedan Performance 296 $53,990

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