Some California Buyers Could Get a Tesla Model 3 for Less Than a New Toyota Camry
Should you buy a Camry, or should you buy a car from Elon Musk? If you’re shopping on price alone and live in California, the choice might become a lot simpler after this news. Reuters recently reported that the Model 3 can become less expensive than a new Camry if buyers can capitalize on federal and California state incentives.
The base Model 3 starts at $40,240, which can drop as low as $25,240 after accounting for the $7,500 federal EV tax credit and the $7,500 California tax credit. The Camry starts at more than $26,000 for comparison. Tesla recently shifted some of its supply chain practices to make all Model 3 variants eligible for federal credits, which require battery materials to be sourced from certain areas.
Tesla has also cut prices in recent months, after years of increasing MSRPs. Combined with federal and state incentives, the price adjustments may help the automaker buoy Model 3 sales as it prepares to roll out an updated car in the coming months. At the same time, Tesla is gearing up to finally begin production of the long-awaited Cybertruck, as its suppliers claim the company will have release candidate units ready by the end of August. Elon Musk seems confident, too, telling investors the automaker will build 375,000 trucks per year.
[Image: Tesla]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
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.
More by Chris Teague
Comments
Join the conversation
A human who choses Tesla is telling the world that they are more intelligent than 98.5% of the remaining population. The Homo sapiens genome is evolving to the next species and it is starting with TESLA customers. We are the future, we are the galaxy, we will succeed all of humanity.
Tesla, relying on subsidies to sell vehicles. Goes to prove Tesla is still not price competitive. As I've asked before, what would happen to tesla pricing if the government subsidies were discontinued? I think the answer is clear, Tesla prices would drop to maintain sales. Now here come VoGhost and Art Vandelay with personal attacks.
Nice to see California giving NY some competition to be the worst run state in the union.
Did Newsuance get the award for his efforts at grooming kids?