Tesla Inc’s (TSLA.O) rapid adjustment of its battery supply chain means all of its Model 3 vehicles qualify for federal U.S. credits that, along with other tax breaks, could lower its price to less than a Toyota (7203.T) Camry.
The Biden administration on Tuesday confirmed that all Tesla (TSLA.O) Model 3 vehicles now qualify for $7,500 electric vehicle consumer tax credits after two versions were eligible for half the credits.
New battery sourcing rules went into effect in April that lowered the credit of the Model 3 Standard Range Rear Wheel Drive and Long Range All-Wheel Drive to $3,750. Tesla last week on its website said that all versions of the Model 3 again qualify for the full credit. The government confirmed the change on its fueleconomy.gov website.
A Model 3 starts at $40,240 and the price may fall to $25,240 when the $7,500 federal tax credit and another $7,500 from the California tax rebate kick in, depending on income and other requirements. Toyota’s Camry is listed at $26,320 and higher.