Tesla Model 3 Tax Credit

It appears that the Model 3 Standard Range, Tesla's most affordable vehicle, is expected to lose the full $7,500 federal tax credit due to its battery cells being sourced from China. As you may know, the new tax credit program required battery production in North America and materials to be sourced from countries with free trade agreements with the US.

While the guidance for these requirements wasn't released in time for January, it was waived until Q2. However, Tesla now anticipates that the IRS will soon release the guidance, which will affect the Model 3 Standard Range. If you're considering purchasing this model, it's crucial to stay informed on this development.

On the bright side, Tesla's other vehicles, such as the Model Y and other Model 3 variants with US-produced batteries, are expected to retain the full tax credit. So, if you're eyeing these models, you're still in luck!

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