There has been much debate going on about how affordable Tesla’s low-end car, the Model 3, will be. It’s been stated it will be as low as $35,000, but if you use government incentives, that price can get much lower. Just how low? In California, that price goes all the way down to a ridiculous $25,000.
According to Electrek, the Model 3 was just added to the list of eligible cars for the California Air Resources Board’s Clean Vehicle Rebate Project (CVRP). That means it’s eligible for all tax incentives that bring the overall price of the car down to $25,000, and possibly even lower.
Potential buyers of the Model 3 can apply for a federal credit of $7,500 that can be coupled with the CVRP’s $2,500 credit that brings the base price of the Model 3 from $35,000 down to $25,000. Some people can qualify for an even bigger CVRP credit, but there are certain stipulations. Buyers making less than $35,640 or families of four with an annual income of less than $72,900 can see their CVRP’s credit bumped up to $4,500. These would be the specific situations where a base Model 3 can be purchased for under $25,000.
There are some restrictions buyers should be aware of when it comes to credits. Individuals making over $150,000 or joint families making over $300,000 don’t qualify for the Clean Vehicle Rebate Project’s credit.
Tesla is planning on focusing early deliveries of the Model 3 to California, making its incentives that much more important. The first Model 3 deliveries are arriving this month. Those buyers should apply for their due incentives as soon as possible.