Tesla Model 3 Long Range price drops to under $40,000 thanks to full $7,500 federal tax incentive

[Redaktion]

The recently refreshed Tesla Model 3 Long Range AWD price has dropped by another $3,750 for those eligible for the US federal tax incentive. The Highland refresh of the Model 3 LR previously did not qualify for the full $7,500 because of restrictions on battery material origin. After regaining the full $7,500 incentive, the Model 3 LR AWD can be had for $39,990.

https://www.notebookcheck.net/Tesla-Model-3-Long-Range-price-drops-to-under-40-000-thanks-to-full-7-500-federal-tax-incentive.849178.0.html

[Bizarro_NikoB]

So basically Tesla kept the same pricing model but now the US government is subsidizing almost 10% of the cost at tax payer expense to the sole benefit of Tesla and their profit margin.

And somehow this is being promoted as a good thing in the media?? If only every company could land such a sweet deal...

[julian.vdm]

So basically Tesla kept the same pricing model but now the US government is subsidizing almost 10% of the cost at tax payer expense to the sole benefit of Tesla and their profit margin.

And somehow this is being promoted as a good thing in the media?? If only every company could land such a sweet deal...

You have a point, but it's not exclusive to Tesla. It applies to any EV maker in the US. Additionally, tax dollars go to far worse for-profit entities. Oil, gas, animal agriculture. All heavily subsidised and some of the biggest companies in the world raking in record profits. Subsidies are nothing new, unfortunately. 

[A]

So basically Tesla kept the same pricing model but now the US government is subsidizing almost 10% of the cost at tax payer expense to the sole benefit of Tesla and their profit margin.

And somehow this is being promoted as a good thing in the media?? If only every company could land such a sweet deal...

To be more accurate, how the IRA works is this. For an EV to qualify for tax credits, it's batteries must have a certain % mined, processed and manufactured domestically. Every year, those requirements get stricter and stricter. In first year Tesla Model 3 qualified for the tax credit, but this year their content wasn't enough domestic so it dropped to 3.5k

The reason why it is positive is because the IRA is working exactly how it was intended to work. By bringing the EV supply chain domestically and creating local jobs.

That said, it isn't like Tesla raised prices and the tax credit goes to the consumer, so your statement about it increasing Tesla's profit margins is inaccurate. Of course Tesla may see overall increase in sales due to it

And every car company has access to the same deal as Tesla, it isn't a Tesla only thinga