Even the cheapest Tesla Model 3 now qualifies for the full $7,500 tax credit
on April 18th, vehicles using battery components that are 50 percent made or assembled in the US qualify for a tax credit of $3,750. They can only get the full $7,500 credit if their manufacturer sources at least 40 percent of their critical minerals from the US or its free trade partners, which don't include China.
A lot of EVs were kicked off the list of vehicles qualified for credits when the change was implemented, butin the days that followed. You could only subtract $3,750 from your taxes for Tesla's rear-wheel drive and long range Model 3 due to the new guidelines, but that's no longer the case. It's not quite clear if Tesla altered the cars' batteries or found new suppliers to ensure that its new Model 3 deliveries meet the requirements for the new guidelines.
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