There have been multiple reports for a while now of Tesla working on a new entry-level EV to be priced under $30,000. Now though, thanks to government subsidies Tesla's Model 3 RWD variant could be one of the few EVs to be offered at that price range.
Tesla recently announced that all versions of its Model 3 EV qualify for the full federal EV tax credit of $7,5000. As per the federal tax credit, 40% of the critical minerals must be extracted in the US or from a country with a free trade agreement, while 50% of the value of the battery components must be either manufactured or assembled in North America.
With the inclusion of the full federal EV tax credits, the price of the Tesla Model 3 RWD comes down to $32,740, provided the buyers meet certain criteria like income restrictions & MSRP caps.
However, apart from the federal tax credits, the Model 3 sedan also benefits from state incentives. New York offers up to $2000 off on EVs via its 'Drive Clean' Rebate. In Southern California though, post the federal tax credits and the state incentives, prices for the Model 3 RWD fall down to as low as $22,830 - provided buyers meet all eligibility requirements.
Source: Autoblog