Federal Tax Credit
The federal tax credit is up to $7,500 USD off at the point of sale, which applies to EVs with batteries originating from the United States. The Model 3 Performance was launched with the EV tax credit, which meant that until now, it was cheaper to purchase than the Model 3 Long Range.
Interestingly, after this change, the Model 3 Long Range is only $1,000 USD more expensive than the Model 3 Rear Wheel Drive, as the RWD model is not eligible for the credit. The LFP batteries in the RWD model are from CATL in China, and thus mark it as ineligible.
At $40,000 USD, the Model 3 Long Range is now an even better deal than before – and is nearly $7,500 less (the amount of the credit), than the average new car in the United States.
Canadian EV Credits
In Canada, Tesla dropped the Model 3 RWD price by $1,000 CAD, in response to the province of British Colombia reducing the upper limit of their EV credit MSRP range. This means that the Model 3 RWD is the only Tesla vehicle that is covered under the new BC rebate – which is one of the few provincial rebates still left standing.
Sadly, as a result of this change, and due to a weird classification gimmick, the Model Y is considered a sedan by the Government of BC and is completely ineligible for the additional rebates – but the $5,000 federal EV rebate still applies.
Tesla vehicles accounted for 80% of federal EV rebate applications in Canada in 2023, marking a net increase since last year at 60%.
