Tesla Model 3 Long Range Starts at $40,000 Thanks to US Federal EV Tax Credit

The latest Tesla Model 3 Long Range variant is now eligible to receive the full US electric vehicle tax credit of $7,500 for every purchase of the clean energy car for users to enjoy. This eligibility was only made available recently, and this only means that there were significant changes from Tesla, which resulted in being granted the full EV tax credits in the present.

Additionally, the IRS and Tesla have recently confirmed that the Model 3 Long Range variant qualifies for the tax credit.

Tesla Model 3 Long Range Now Eligible for Full US EV Tax Credit

A recent confirmation from Tesla unveiled that the Model 3 Long Range variant is now eligible for the full US EV tax credit, which will lessen its price by $7,500, according to Electrek. The original cost of the Model 3 Long Range on Tesla's website is $47,490, which means that it would be available for only $39,990, roughly below the $40,000 price tag.

With the EV tax credit applied, the Model 3 Long Range is only $1,000 more expensive than the Rear-Wheel Drive variant, which is known not to be eligible.

Previously, the Model 3 Long Range and Rear-Wheel Drive variants were ineligible to receive tax credits because of their LFP batteries from China.

What Changes Were Made on Tesla Model 3 Long Range?

As the US wants to lessen its reliance on Chinese and imported products, these tax credit restrictions for EVs have become more strict over the years. However, it remains unknown what Tesla changed for the Model 3 Long Range to get eligibility for the EV unit, but according to Electrek, it was presumably its batteries.

Tesla's Vehicles with US EV Tax Credits

The entire EV tax credits fiasco with the Biden administration, the IRS, and other agencies saw massive changes in 2023, and this is because of the requirement to focus more on American-made parts or locally sourced components to be used to qualify.

In April last year, only six vehicles were eligible for the tax credits: the Cadillac Lyriq, Chevy Bolt, Chevy Bolt EUV, Tesla's Model 3 and Model Y, and the Ford F-150 Lightning.

It is also known that, towards the end of 2023, Tesla claimed that the Model 3's rear-wheel drive and the Long Range's eligibility will be split in half by January 1, 2024. They advised their customers to purchase and have the EV delivered before December 31 to qualify for the full $7,500 tax credit via eligible cash or loan purchases within the company.

There are massive changes again to the Model 3 Long Range's eligibility for the full US EV tax credit, making it more affordable and available for only a $40,000 starting price. It remains unknown what changes Tesla made that helped make the Long Range variant eligible for the entire discount, with this being a great deal from Tesla and the IRS now to get started on one's EV journey.