Tesla Vehicle For Under $15,000? Not Yet, But This State Has Incentives To Get The Price Under $20,000

Electric vehicles in the United States qualify for federal credits, state credits and other credits that can knock the starting price down to make them in line with traditional automobiles. Tesla Inc TSLA is among the companies that benefit from certain credits for electric vehicles.

What Happened: For years, Tesla CEO Elon Musk has had a goal of getting the company's electric vehicles under the $25,000 price point. That’s why when stories like a new Tesla vehicle for under $15,000 pop up, people take notice.

A post on X from Tesla influencer Sawyer Merritt on Saturday caught Musk's attention and likely excited a number of residents in Colorado.

Merritt’s post highlighted several tax credits in the state that could make the Tesla Model 3 RWD cost $13,740 versus a starting price of $40,240.

Merritt's post drew the attention of Musk, who asked if this was really possible.

“Yep, new program goes live this month. Idk (I don’t know) how many people would realistically qualify, but it will be possible to get a new Model 3 RWD for under $14k for those eligible,” Merritt responded.

Merritt shared an article from Colorado Public Radio that broke down the credits.

U.S. EV Tax credit: $7,500

Colorado EV Tax credit: $5,000

Colorado Low Cost EV Tax Credit: $2,500

Colorado Vehicle Exchange Program: $6,000

Xcel Energy Rebates: $5,500

Several of the incentives are only for certain vehicles that qualify, and others are only available to Colorado residents who are in lower income brackets.

While the large numbers of credits are great for Colorado residents, Musk clarified that not all credits are stackable.

“So the best case is more like roughly $20k and there are significant income restrictions. Still very compelling,” Musk wrote.

Merritt later acknowledged that, while the Xcel Energy rebate ($5,500) could not be stacked with the other credits, state utility regulators are currently reviewing a plan that would allow the combination of state credits and Xcel incentives.

This means that customers who meet all requirements can still get $21,000 off the price of a new Tesla Model 3 RWD. This would bring the starting price down to $19,240.

Related Link: Tesla Q2 Earnings Highlights: Revenue Beat, EPS Beat, Cybertruck Update And More

Why It’s Important: Colorado has incentives in place that can bring the cost of a new Tesla Model 3 RWD to under $20,000.

The incentives come as Governor Jared Polis has made a push to see more electric vehicles sold in the state. Polis has a goal of putting nearly one million plug-in vehicles on the road in Colorado by 2030. Electric vehicles totaled 13% of new car sales in Colorado in the second quarter of 2023. The governor has a goal of hitting 25% by 2025.

The $5,000 state tax credit in Colorado is the largest nationwide. Colorado is considered one of the most friendly places to purchase a new electric vehicle based on credits and pricing.

Read Next: Here's How Many Vehicles Tesla Has Delivered And Produced In Each Quarter Since 2019 

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