Tesla announces major changes to Model 3 tax incentives

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Tesla has announced major changes to the tax incentives for the Model 3, which brings pricing down significantly.

Tesla said that all three trim levels of the Model 3 now qualify for the full tax credit of $7,500, as previously, the Model 3 Performance was the only vehicle that qualified for this amount. The Model 3 Rear-Wheel Drive and Model 3 Long Range both qualified for half the amount, $3,750.

Tesla adjusts Model 3 prices amid lowered $3,750 federal tax credit

It appears Tesla is reserving vehicles with China-made batteries for other markets. It recently started shipping Model Ys from China to Canada, which may have been a strategy for reserving as many vehicles for the U.S. market that would qualify for the full tax incentive.

Previously, the Model 3 RWD and Long Range equipped LFP prismatic cells built by CATL from China, which disqualified the vehicles for the full amount.

As a part of the Inflation Reduction Act, the Biden Administration has set aside North American-produced battery cells and vehicles for government tax credits.

The adjustments to the pricing via the tax credits bring the Model 3 RWD to just above $30,000, making it the most affordable Tesla vehicle. However, some local incentives would bring the cost of the Model 3 RWD below $30,000, making it one of the most affordable EVs on the market.

The Model 3 Long Range will now be well under $40,000.

However, these prices also include the potential savings that Tesla factors in, which includes other potential incentives and estimated gas savings of $2,400.

Tesla states that the qualifying vehicles must be purchased new.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla announces major changes to Model 3 tax incentives

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Elon Musk commends ‘best quality’ Tesla EVs in Shanghai

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Elon Musk has commended the quality of the Tesla electric vehicles built at Gigafactory Shanghai in China, recognizing them as “one of the best quality cars in the world.”

Musk wrapped up his first visit to China in three years by returning back to the U.S. earlier this week. The trip included meetings with Chinese officials and a visit to Gigafactory Shanghai, Tesla’s Chinese manufacturing plant.

Musk commended the plant for producing some of the “best quality” automobiles in the world, a long-standing narrative in the Tesla community. Tesla has long sparred with critics over the quality and build of its vehicles, but Giga Shanghai has long attempted to redefine the moniker of “Made in China” by producing what is the best and highest quality cars in the company’s lineup of factories.

“The emergence of Tesla has expanded the export sales area of Chinese cars to developed markets such as Europe and the United States, breaking the prejudice of ‘low price, low quality, and low value’ made in China, and sending ‘high quality, high value’ Chinese made cars,” a report from major Chinese outlet Xinhua said in late 2021.

The Model 3 manufactured at the plant in Shanghai has also been noted as one that brings the least number of complaints forward per vehicle. This was highlighted in a study performed in 2020.

Musk made an extensive visit to the factory during the tail end of his trip, with rumors of seeing the new Model 3 also landing on the agenda. While the look at Project Highland remains unconfirmed, what is for sure is Musk’s impression of Shanghai’s factory and its workers, which is likely standing toward the top in terms of a comparison of the four currently operational vehicle factories.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Elon Musk commends ‘best quality’ Tesla EVs in Shanghai

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Tesla in India is getting serious…again

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Tesla in India is getting serious, yet again, after the government has reportedly discussed a roadmap report from the electric vehicle maker as negotiations for the company’s arrival in the country seem somewhat imminent.

Indian government officials have already asked Tesla if it is serious about setting up a manufacturing plant in the country, it is willing to “offer import concessions on the components required for the same,” the Financial Express reported.

Tesla will eventually have to manufacture the components locally, as it favors domestic manufacturing and will not necessarily be able to import vehicle components from China or other countries.

“The government is willing to give time for setting up a domestic vendor base, but Tesla will have to indicate a period by which the duty concessions on components granted to it will come to an end,” officials reportedly told the publication.

India did the same for Apple, and it seems Tesla is finally getting some movement on the terms it laid out for an Indian factory.

The two parties have been working on an agreement for years, but now it seems the game of chicken to see who would budge first is coming to a close.

India has long favored domestic manufacturing as part of its “Make in India” campaign, which has been geared toward boosting the country’s economy. Tesla, on the other hand, has pushed to test demand by importing vehicles from China, a strategy that does not align with “Make in India,” and government officials have not been keen on supporting.

But the terms are undoubtedly moving forward, especially as recent developments have shown Tesla is looking to move forward and is reportedly “serious” about building a manufacturing plant in India, according to Rajeev Chandrasekhar, India’s Minister of State for Skill Development and Entrepreneurship.

Tesla ‘serious’ about India factory, but what has changed remains unclear

Officials said a fixed timeline for localization is already set, and once Tesla agrees to build a plant, the government may come out with a modified production-linked incentive (PLI) scheme.

Tesla is also no longer pressing for lower import duties, so both sides are moving forward to make a deal happen.

CEO Elon Musk noted in May that the company will likely announce a new Gigafactory location by year’s end, and India is absolutely appealing for the potential site.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla in India is getting serious…again

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