EV giant Tesla Inc TSLA has updated its official U.S. website to show the starting prices of its Model 3 and Y vehicles after federal tax credits, in an apparent effort to educate potential buyers about how affordable these cars have become.
What Happened: The U.S. website now shows that the Model 3 starts at $32,740 and Model Y at $39,990, with a footnote specifying that it was only after federal tax credits.
Tesla investor and entrepreneur Sawyer Merritt spotted this change and shared it on Twitter late on Wednesday.
At the time of writing, Tesla’s websites in Canada, China and the UK did not display similar information on the Model 3 and Y pages.
Why It Matters: After the U.S. treasury department issued fresh guidance on battery sourcing in March, Model 3's Rear-Wheel Drive (RWD) and Long Range versions were qualified only for a tax credit of $3,750 given that its batteries come from China. The Performance range, however, was eligible for a full tax credit.
On Tuesday, the U.S. Department of Energy changed this and confirmed that all versions of the Tesla Model 3 are now eligible for a full tax credit.
Versions of the Tesla Model 3 and Model Y are now among the 22 battery electric vehicles eligible for a full tax credit of $7,500 in the U.S.
With the starting price of the Model 3 RWD now at $34,130 including the destination fee, Tesla is beginning to fill the gap in the market for affordable vehicles vacated by the Detroit 3, said Morgan Stanley analyst Adam Jonas.
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