Tesla changed battery supplier
Tesla’s battery supply chain adjustments have made all Model 3 vehicles eligible for U.S. federal incentives that, along with other discounts, can bring the price down to less than the Toyota Camry.
The Biden administration confirmed on Tuesday that all Tesla Model 3 vehicles are now eligible for the $7,500 consumer tax credit after two of the three versions were eligible for half of the credit.
New battery regulations came into effect in April that reduced the discount on the Model 3 Standard Range Rear Wheel Drive and Long Range All-Wheel Drive to $3,750. Tesla said on its website last week that all versions of the Model 3 are once again eligible for a full $7,500 discount. The government confirmed the change on its fueleconomy.gov website.
Tesla Model 3 has become cheaper than Toyota Camry
The Model 3 starts at $40,240 and could drop to $25,240 when the $7,500 federal tax credit and another $7,500 tax credit in California kick in. The Toyota Camry starts at $26,320.
Analysts say Tesla has changed its battery supply chain to meet both mineral and battery component requirements for the federal subsidy.
Analysts speculate that Tesla may have ditched CATL in favor of Panasonic or LG’s Energy Solution for the American Model 3.
