The Tesla Model 3 just became less expensive than the price of the Toyota Camry in California thanks to the company’s confirmation that each of the all-electric sedan’s trim levels qualifies for the full $7,500 tax credit.
Late last week, Tesla changed the language on its Model 3 Design Studio to reflect updated tax credit qualifications, indicating that all three configurations of the sedan qualified for the full tax credit amount.
Tesla adjusts Model 3 prices amid lowered $3,750 federal tax credit
Previously, only one variant, the Performance trim, qualified for the full amount, while the other two builds were only set to receive half, of $3,750, of the total credit.
The updated credit amount, when combined with local incentive amounts in some regions, like California, are helping Tesla vehicles reach price parity with gas cars. In some instances, they’re even undercutting the cost of some of the most popular sedans on the market in California, like the Toyota Camry.
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Reuters reported earlier today that the FuelEconomy.gov website has officially updated its website to reflect the new Model 3 tax credit qualifications, which are enabled through the use of domestic battery packs in the vehicles. Previously, the lower two configurations of the Model 3 used batteries built in China.
When the Model 3’s Rear-Wheel-Drive trim level is purchased at its sticker price of $40,240, the federal tax credit of $7,500 and the California tax rebate of $7,500, brings the price down to $25,240, which undercuts the cost of the Camry, which is listed at $26,320 in its entry-level configuration.
While other automakers are saying that price parity won’t come until the end of the decade, Tesla has seemingly already reached it with certain trim levels.
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The inclusion of the Model 3 receiving the full tax credit across the board is not only a huge disadvantage to competing EV makers, but also to the big petrol companies that have yet to source their vehicles completely from domestic regions that can’t offer comparable prices due to lack of scalability.
Tesla’s lead continues to grow with developments like this, and it is only a wonder of how long it will take for other companies to catch up.
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