(Green Car Reports) — The base Tesla Model 3 now qualifies for the full $7,500 federal EV tax credit, joining other Model 3 variants.
On Friday, Tesla fans noted that, when building a base Model 3, Tesla then indicated that it was eligible for a $7,500 credit. At that time, the EPA FuelEconomy.gov list of qualified vehicles indicated that model and some of the lineup was only eligible for $3,750, and Green Car Reports reached out to the EPA for comment.
As of Tuesday, with no further confirmation from EPA, the site was updated to indicate that the entire Model 3 lineup is now eligible for the full amount.
When the federal government initially listed qualified vehicles in April, only those getting the Model 3 Performance could claim the full $7,500. But now the entire lineup is eligible, according to FuelEconomy.gov. That lineup includes the base rear-wheel-drive Model 3 and all-wheel-drive Model 3 Performance and Model 3 Long Range.
This isn’t the only adjustment made to the list of qualified vehicles since it was first announced. Just a few days after that list was released, Volkswagen confirmed that all 2023 ID.4 models qualify for the full $7,500 credit. A shift to local assembly of U.S.-market vehicles, as well as local battery sourcing, allow that.
The base Model 3 currently starts at $41,630 before the credit, so this gives it an effective price below $35,000 if buyers qualify on household income restrictions.
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In order to be able to claim the full amount on the base Model 3, with lithium iron phosphate (LFP) cells, Tesla must have changed sourcing of LFP cells to a U.S. trade partner—not China. Currently LFP cells for EVs aren’t made in the U.S. at any scale, but a Michigan plant making them is key to Ford’s plans for EV affordability.