Tesla Model 3 Long Range gets access to federal tax credit, now starts at $40,000

The Tesla Model 3 Long Range is now eligible for the $7,500 federal tax credit for electric vehicles.

This significant update makes the Model 3 Long Range more affordable for many buyers.

With increasing restrictions on battery material and component sourcing,

it has been challenging to track which electric vehicles qualify for the federal tax credit.

The Model 3 Long Range now meets these standards, making it more attractive option for eligible buyers.

After applying the tax credit, the Model 3 Long Range starts at approximately $40,000.

This is only $1,000 more than the Model 3 Rear-Wheel Drive,

which does not qualify for credit due to its use of LFP battery cells from China.

This price point is about $7,000 less than the average new car sale price in the United States.

Tesla has likely changed the batteries in the Model 3 Long Range to meet the eligibility criteria for tax credit.

This adjustment is expected to boost sales, especially since the Model 3 has been lagging behind the Model Y despite recent updates.

With the new federal tax credit, the Tesla Model 3 Long Range offers a compelling deal,

combining affordability with the benefits of electric vehicle ownership.