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.
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