All Tesla Model 3 Versions Now Eligible for Full $7,500 Federal Tax Credit

All versions of the Tesla Model 3 now qualify for the full $7,500 federal tax credit in the US, making the entry-level Model 3 Rear-Wheel Drive effectively start at $34,380. Tesla likely tweaked its supply chain to meet the federal tax credit requirements, which include local production in North America and a certain percentage of critical minerals and battery components being manufactured or assembled in North America. This move strengthens the Model 3's competitiveness and may unlock manufacturing capacity in Fremont, California.