Tesla Model 3 and Model Y to Lose Federal Tax Credits

New government requirements for fewer Chinese parts in electric vehicles lead to the reduction in tax credits.

• Tesla announced that Model 3 RWD and Long Range will lose the entire $7,500 federal tax credit starting January 1st, 2024.
• Model Y is also likely to see reductions in its federal tax credits.
• The reduction in tax credits is due to new government requirements for electric vehicles to have fewer parts, especially batteries, from China.
• Tesla is working to produce more batteries locally in the US to regain access to the full tax credit.
• It's unclear when Tesla will be able to ramp battery production enough to support Model 3 and Model Y being produced in the US.

3 Articles

Electrek Electrek Benzinga