Tesla’s Model 3 is set to cost $35,000 upfront, but the car could be significantly cheaper thanks to federal and state tax incentives. A Bloomberg report reveals that the final price may hinge on how quickly Tesla can gets its new electric vehicle onto the street.
The car’s final price might be as low as $25,000 in some parts of the country. A federal income tax credit would cover $7,500, with the rest coming from individual state and local credits. This should push the vehicle well below the average price for a new car in the U.S., which is $33,560 as of April 2015.
However, those federal incentives won’t be around forever. The tax credit was introduced to help new companies and products launch, and only covers the first 200,000 EV sales for each firm. After that, the incentives quickly drop off before hitting $0.
Tesla is already on pace to sell its 200,000th car by mid-2018. The Model 3 is currently slated to launch in 2017, but, if history is any indication, the car could be delayed by as much as a year. The remaining tax incentives may be a lot less appealing by then.
Even if the Model 3 does launch when promised, the company could still run into trouble. If the car is a hit, Tesla may sell its 200,000th electric car even soon than expected.
Tesla is set to reveal the Model 3 and start taking pre-orders next month. Hopefully the company can also offer a concrete production timeline at the unveiling, which should help clear up the final price.
Tesla makes some of the coolest cars on the market, but for many people the $70,000 Model S is too expensive to justify buying. Thankfully it looks like the company is also working on a cheaper Model E that might not come at such a high price. The electric car-maker is currently developing the Model […]
Faraday Future recently unveiled its FFZERO1 concept, which we’ve already argued is enough reason to make Tesla worried. So, we figured we’d stop by the company’s area at CES 2016 and take a closer look. Hope you have a handkerchief nearby, because you’re about to drool. The car features such dream options as VR-mapping, zero […]
Faraday Future is gearing up to announce something big, and we just got our first look. The mysterious Tesla-competitor offered a quick peek at its upcoming electric car in a new teaser video. Our concept reveal is in 5 days at #CES2016. Watch live at 8pm PST on Jan 4: https://t.co/hMuj6HUGXN #CarOfConcepts https://t.co/aDEDt7O9na — Faraday Future (@FaradayFuture) December 30, 2015 […]
Faraday Future, a mysterious electric car startup based out of California, shared a new video this week that imagines an auto utopia, a future in which cars have “interesting lives,” and show up to your house on-demand like a taxi. The video is more of a daydream about what the future could look like, and not […]
Here at CES 2016, Chevy finally did what everyone expected: the automaker unveiled the production model Bolt, an all-electric car expected to be priced at or under $30,000. Chevy has already bet big on electric with the gas/electric Volt; the Bolt is a complete shift over to EV, a statement of intent to be at the […]
The Wall Street Journal reports GM has plans to launch an all-electric Tesla competitor for just $30,000. Sources close to GM’s plans claim the Chevrolet vehicle, dubbed Bolt, will be capable of around 200 miles on a single charge, and be available by 2017. That 200 mile range is important to Chevy, and is reportedly […]