Tax Credits

A Tesla Now Costs Less Than a Camry With CA Tax Credits

A Tesla Now Costs Less Than a Camry With CA Tax Credits

Thanks to California tax credits, eligible consumers can now purchase a Tesla Model 3 for less than a Toyota Camry.

Elon Musk -- once again the world's wealthiest person after LVMH CEO Bernard Arnault’s net worth dropped this week -- and his Tesla team recently made a rapid adjustment to the Model 3's batteries so it would qualify for EV tax credits outlined in the Inflation Reduction Act.

Credit: Sean Gallup/Getty Images

Yesterday, June 6, President Joe Biden's Administration confirmed that all Tesla Model 3 automobiles will now qualify for $7,500 electric vehicle consumer tax credits. 

Per Reuters, in April, the nation's new EV battery rules lowered the federal tax credit for the Model 3 Standard Range Rear Wheel Drive and Long Range All-Wheel Drive to $3,750. Last week, Tesla's website was updated with the battery change, and the government confirmed the change on its website with yesterday's announcement.

The Model 3 starts at $40,240, and the price for California residents could be as low as $25,240 with the aforementioned $7,500 federal tax credit and an additional $7,500 California state tax rebate. The base model Toyota Camry, for comparison, is listed at $26,320.

Automotive leader Car and Driver reviewed the Model 3, with relatively few cons. The magazine's verdict about the car was:

“ With a relatively affordable price, athletic handling, and more-than-enough power and range for most drivers, the Model 3 is the Tesla for the masses. ”

Credit: Scott Olson/Getty Images

It is worth noting that California's Clean Vehicle Rebate Program (CVRP) does have some eligibility requirements that can be found on its official website.

Details about the federal program can be found via the IRS.

What do you think about California taxpayers potentially receiving $15,000 in tax credits for purchasing a Tesla?

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Feature Image Credit: Scott Olson/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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