June 9, 2023 – As a highly popular model globally, the Tesla Model 3 stands out in the Chinese market with its competitive price compared to other regions. It is also one of the areas with the lowest prices worldwide. However, when considering various subsidies, the starting price of Tesla in the United States can reach as low as $19,820, which is nearly 90,000 yuan cheaper than in China.
Tesla’s recent announcement on their official website revealed that all versions of the Model 3 would benefit from a $7,500 federal tax credit. Even the base model, priced at $37,820, could enjoy this incentive. Moreover, residents of California have the opportunity to further benefit from the Clean Vehicle Rebate Project (CVRP) with a maximum subsidy of $7,500. This reduction in price amounts to a significant $15,000, bringing the cost down to only $22,820.
It is important to note that certain conditions must be met to qualify for these tax incentives. The federal tax credit does not apply to all individuals and models. The vehicle must be manufactured in the United States, Mexico, or Canada. While the Model 3 in the US market satisfies the battery requirements, eligibility for the CVRP requires residency or business operations in California, along with meeting specific income qualifications. Higher-income individuals are eligible for a $2,000 tax refund, while lower-to-moderate-income individuals can receive an additional $7,500 value-added tax refund.
If you believe this is the lowest price for the Tesla Model 3, you would be mistaken. In the San Joaquin Valley area of California, local consumers who purchase zero-emission vehicles can receive an additional $3,000 credit subsidy. If one happens to meet all three aforementioned conditions, the final price for the Tesla Model 3 would be as low as $19,820. This is almost a 50% discount compared to the official starting price of $37,820.