Tesla Model 3 Long Range Now Qualifies for $7,500 Federal Tax Credit

Tesla has confirmed that its popular Model 3 Long Range electric vehicle (EV) model is now eligible for the full $7,500 federal EV tax credit under the Inflation Reduction Act, making it far more affordable for potential buyers looking to make the switch to electric.

Previously, it was only the Model 3 Performance trim that qualified for the federal EV tax credit due to stringent new requirements around battery component sourcing. However, it is shown that Tesla has adjusted the Long Range’s battery supply chain to meet the necessary criteria.

With the $7,500 tax credit applied at purchase, the Model 3 Long Range will now effectively start at just $39,990 for potential buyers who are eligible based on income limits. In contrast, it is only $1,000 more than Tesla’s base rear-wheel drive (RWD) trim.

Compared to the Model 3 Performance, the Model 3 Long Range’s new lower effective price especially undercuts the $47,490 price point before the federal EV tax credit. While the Performance trim retains a clear advantage with its high-output dual-motor setup enabling a 0 to 60 mph time in around 2.9 seconds, the Long Range comes with more range of 341 miles.

With this latest move by Tesla aligning with its CEO Elon Musk’s push to localize more supply chains as the company ramps up domestic battery production, potential buyers may see more of the company’s offerings qualified for it soon.

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