Tesla is ensuring its best-selling electric vehicles can maximize savings in 2024 after changes to the U.S. federal EV tax credit. On January 1, 2024, they revealed that several of their zippy EV models will keep on qualifying for the full $7,500 federal electric vehicle tax credit here in the US of A. Hallelujah and pass the lightning!
The newly eligible models include:
- Model 3 Performance
- Model Y Rear-Wheel Drive
- Model Y Long Range
- Model Y Performance
- Model X Long Range
Meanwhile, the Model 3 Rear-Wheel Drive and Model 3 Long Range no longer meet requirements for any federal tax credit, (Tesla Model 3 RWD & Long Range to Lose All $7,500 Tax Credit Starting 2024). Tesla likely tweaked battery component sourcing and manufacturing processes just enough to hit the necessary thresholds.
This strategic adjustment creates exciting savings for U.S. buyers in 2024. With the $7,500 credit, the Model 3 Performance is now cheaper than the recently ineligible Model 3 Long Range, performance variant starts at $43,490 after factoring the tax credit.
The Rear-Wheel Drive and Long Range Model Y also see a compelling $7,500 price reduction. Lower prices combined with the stellar performance specs of these models make them enticing options.
Tesla follows GM, Ford and other automakers who have reworked lineups to optimize credits, Inflation Reduction Act amended rules to require EVs contain batteries with minerals sourced from U.S. free-trade partners. Final assembly must also occur in North America.
Tesla deserves credit for its agility in responding to policy changes. While competitors like the Model 3 Long Range lost eligibility, Tesla maximized options for Americans seeking affordable and exciting EVs in 2024. Steering buyers towards top-trim Performance and Long Range variants also boosts margins.
The revamped federal EV credit makes Tesla’s models more accessible. With rising interest rates challenging affordability, the tax credit helps counterbalance higher monthly payments. This ensures the EV revolution continues charging forward despite economic headwinds.
Savvy lineup adjustments exemplify how Tesla leads on both the policy and product front. Drivers in 2024 can celebrate exciting models made even more attainable through the $7,500 credit.