Tesla Model 3

Tesla Model 3 Now Qualifies for Full $7,500 Tax Credit

The cheapest Tesla Model 3, the Standard Range Plus, now qualifies for the full federal tax credit of $7,500.


Following the implementation of the new guidelines, several EV models were removed from the list of qualifying vehicles. However, in the days that followed, some were reintroduced. Initially, Tesla’s rear-wheel drive and long-range Model 3 could only receive a $3,750 tax credit due to the updated guidelines. However, the recent update on Tesla’s website confirms that these models are now eligible for the full $7,500 tax credit. While the specifics of how Tesla achieved compliance with the new guidelines are unclear, it is likely that adjustments were made to the vehicles’ batteries or the sourcing of critical minerals.