Report: Tesla Model 3 Long Range All-Wheel Drive Could Become Eligible for EV Tax Credits

Chris Teague
by Chris Teague

Tesla recently released the updated Model 3 sedan, but the refreshed model lost eligibility for federal tax credits in all but the top Performance trim. A handful of Reddit users are claiming that the situation has changed, however, stating that the Tesla app reflects the $7,500 credit for the Long Range All-Wheel Drive configuration.


It’s worth noting that Tesla’s website does not reflect the change, only the Model 3 Performance available with a tax credit. The Performance’s credits bring it to around the same price as the Long Range model, so the latter variant’s newfound eligibility will help make it relevant in Tesla’s lineup. The Long Range All-Wheel Drive model will start at just under $40,000 with the credits.

Federal EV tax credits come with price limitations, which for the Model 3 is $55,000, inclusive of options and other fees. If the Model 3 Long Range does gain tax credit eligibility, it would make the car a significant bargain in Tesla’s catalog and only $1,000 more expensive than the base model. The Model 3 Long Range offers 341 miles on a charge and a quick 4.2-second 0-60 mph time, significant improvements over the base model’s 272 miles and 5.8-second 0-60 mph time.


While we will have to wait and see whether the Reddit users’ assumptions are correct, buyers can work around tax credit limitations by leasing a Model 3. Additionally, all Model Y variants are available with the credits, with the top Performance model clocking in at just under $38,000 after the discount.

[Images: Tesla]


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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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6 of 34 comments
  • ToolGuy ToolGuy on Jun 17, 2024

    Mr. Flex, if we could keep the daily reminders to daily instead of minute-by-minute, that would be great... 😉

  • Tassos Tassos on Jun 18, 2024

    EVEN if a MODEL gets the tax credit, very FEW of its BUYERS will be eligible. Under the new laws, you got to be DIRT POOR to qualify. I guess a senior citizen whose only source of income is SS, would.

    • See 1 previous
    • 28-Cars-Later 28-Cars-Later on Jun 18, 2024

      I identify as a senior citizen, maybe I can get the tax credit?


  • Bd2 Probably too late to do anything about it for the launch, but Kia should plan on doing an extensive refresh of the front fascia (the earlier, the better) as the design looks really ungainly.
  • Namesakeone Since I include SUVs and minivans as trucks, I really cannot think of a brand that is truly truckless. MG maybe?
  • Sobhuza Trooper Subaru, they were almost there with the BRAT. --On a lighter note, where the hell is my Cooper Works Mini truck?
  • Mike Evs do suck, though. I mean, they really do.
  • Steve Biro I don’t care what brand but it needs to be a compact two-door with an ICE, traditional parallel hybrid or both. A manual transmission option would be nice but I don’t expect it - especially with a hybrid. Don’t show me an EV.
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