Have you seen the latest state electric vehicle incentives? They are making Tesla’s most affordable car, Tesla Model 3, cheaper than economy cars in some states. With discounts and incentives, you can buy a brand new Tesla for as little as $22,590 in certain locations.
The question is – how is this possible? Aren’t Tesla supposed to be luxury, unattainable vehicles for most people? Well, thanks to aggressive EV legislation and incentives in states like Colorado, Vermont, Massachusetts, and Maine, driving home a Model 3 is now very feasible for regular folks.
Federal tax credits take $7,500 off the cost right off the bat. But some states have additional rebates and incentives that slash thousands more. For example, in Colorado the Model 3 Rear-Wheel Drive has an MSRP of $46,990. Take off the $7,500 federal credit and you get $39,490. Then Colorado’s EV incentives take off another $5,000 for a drive-away price of $34,490. And Tesla is offering inventory discounts up to $10,000, bringing the total to $22,590. That’s over 50% off!
The incentives do come with fine print – there are income caps to qualify for each one, you need to take delivery by December 31st to get the full $7,500 federal credit. It drops in half to $3,750 on January 1st, 2024. But even with that, we’re looking at a $26,340 Model 3 in Connecticut or a $25,590 price tag in Pennsylvania and New York.
For perspective, today’s average new car transaction price is over $48,000. So a brand new electric Tesla for under $26,000? And keep in mind the gas and maintenance savings driving electric. This explains why Tesla’s order backlog remains over 6 months long. The affordable Model 3 is selling faster than they can make them!
What do you think? Have you seen your state’s EV incentives? Are they enough to put you behind the wheel of a shockingly inexpensive Tesla? Let us know!