I’ve been driving the Tesla Model 3 Long Range All Wheel Drive since 2018 and love it. The Model 3 has now been fully refreshed and that sweet spot model is now eligible for the $7,500 federal tax credit, dropping its cost to $39,990 if you’re eligible. It was previously not eligible for any tax credit this year after the refresh.
The Model Y will be similarly refreshed next year.
The tax credit is now valid at the point of sale, so you will pay just $39,990+fees and tax out the door for the refreshed Model 3 Long Range All Wheel Drive. The credit applies if you buy or finance the car, but not for leasing the car, though lease payments have dropped as well.
The tax credit applies in full if you have AGI in the current year or the previous year up to $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers. As long as your AGI is lower than those numbers in either year, you will qualify for the credit. However, if you expect a lower AGI in 2024 in order to qualify, but wind up with a higher AGI, you will have to pay back the credit when you file your taxes.
Best of all, while in previous years the credit was non-refundable, with the point of sale rebate if your tax liability is lower than $7,500, you will not have to pay back the credit, as long as your AGI is lower than the limits.
Speak to a financial professional for more details about how the tax credit may affect you.
It’s worth noting that if you’re buying a car for business purposes, there is an alternate $7,500 commercial EV credit, that has no income limitations and will be valid on all Tesla models as it has no cost limit either. Speak to a financial professional for more details.
And if you buy a Model X for business purposes, you may be able to take a first-year section 179 60% bonus depreciation for cars weighing over 6,000 pounds that are delivered by 12/31/24 before depreciating the rest of it over 7 years. That can mean massive tax savings based on your marginal federal and local tax rate. Speak to a financial professional for more details.
- Many states also offer incentives for buying an EV:
- NJ buyers pay no sales tax on EVs and there are charging installation rebates.
- NY offers a $2,000 EV rebate and HOV lane stickers.
- Colorado offers a $5,000 tax credit for EVs up to $80,000.
See more state incentives here.
While in the past Tesla had a referral program that offered additional credits and perks, that program is currently unavailable. Elon Musk said to expect the referral program to return next quarter, so you may want to wait for that to happen before buying a Tesla.
Here is a history of Tesla pricing (Scroll at the bottom of the chart):
| Model | Late 2020/Early 2021 Pricing | Mid 2022 Pricing | April 2023 Pricing | May 2023 Pricing | September 2023 Pricing | October 2023 Pricing | December 2023 Pricing | July 2024 Pricing | Current Pricing After Tax Credit |
|---|---|---|---|---|---|---|---|---|---|
| Model 3 Rear-Wheel Drive/Standard Range | $35,000, in-store only | Discontinued | Discontinued | Discontinued | Discontinued | Discontinued | Discontinued | Discontinued | - |
| Model 3 Rear-Wheel Drive/Standard Range+ | $37,990 | $46,990 | $39,990 | $40,240 | $39,740 after $500 referral discount | $38,740 after $250 referral discount | $38,990 | $38,990 | $38,990 |
| Model 3 All-Wheel Drive/Long Range | $46,990 | $57,990 | Was unavailable | $47,240 | $46,740 after $500 referral discount | $45,740 after $250 referral discount | $45,990 | $47,990 | $39,990 |
| Model 3 All-Wheel Drive/Performance | $54,990 | $62,990 | $52,990 | $53,240 | $52,740 after $500 referral discount | $50,740 after $250 referral discount | $50,990 | $54,990 | $47,490 |
| Model Y Rear-Wheel Drive/Standard Range | Was unavailable | Was unavailable | Was unavailable | Was unavailable | Was unavailable | $43,740 after $250 referral discount | $43,990 | Discontinued | - |
| Model Y Rear-Wheel Drive/Long Range | Was unavailable | Was unavailable | Was unavailable | Was unavailable | Was unavailable | Was unavailable | Was unavailable | $44,990 | $37,490 |
| Model Y All-Wheel Drive/Standard Range | $41,990 | Was unavailable | $46,990 | $47,490 | $47,240 after $500 referral discount | Discontinued | Discontinued | Discontinued | - |
| Model Y All-Wheel Drive/Long Range | $49,990 | $65,990 | $49,990 | $50,490 | $49,990 after $500 referral discount | $48,240 after $250 referral discount | $48,990 | $47.990 | $40,490 |
| Model Y All-Wheel Drive/Performance | $59,990 | $69,990 | $53,990 | $54,490 | $53,990 after $500 referral discount | $52,240 after $250 referral discount | $52,490 | $51,490 | $43,990 |
| Model S All-Wheel Drive/Long Range | $79,990 | $104,990 | $84,990 | $88,490 | $73,990 after $1,000 referral discount | $77,740 after $250 referral discount | $74,990 | $72,990 | Ineligible for credit. |
| Model S Plaid | $119,990 | $135,990 | $104,990 | $108,490 | $88,990 after $1,000 referral discount | $89,740 after $1,000 referral discount | $89,990 | $87,990 | Ineligible for credit. |
| Model X All-Wheel Drive/Long Range | $89,990 | $120,990 | $94,990 | $98,490 | $78,990 after $1,000 referral discount | $79,740 after $1,000 referral discount | $79,990 | $77,990 | $70,490 |
| Model X Plaid | $119,990 | $138,990 | $104,990 | $108,490 | $88,990 after $1,000 referral discount | $89,740 after $1,000 referral discount | $94,990 | $92,990 | Ineligible for credit. |
| Cybertruck Rear-Wheel Drive | - | - | - | - | - | - | - | $60,990 | Ineligible for credit. |
| Cybertruck All-Wheel Drive | - | - | - | - | - | - | - | $79,990 | Ineligible for credit. |
| Cybertruck Cyberbeast | - | - | - | - | - | - | - | $99,990 | Ineligible for credit. |
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9 Comments On "Tesla Model 3 Long Range All Wheel Drive Now Eligible For Tax Credit; Chart Of Tesla Pricing History"
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No cybertruck pricing? Seriously though I was just offered to order mine and I can get it as soon as June but I don’t think I want it. If someone is interested they can reach out to me. I assume they can get my email address through this forum.
I love my model 3 AWD long range but I was a sucker who paid top price. I’m interested in the cyber truck how do I get in touch?
bagsterchris@gmail.com
Just emailed you!;-)
Cyber truck is so ugly. My 19 year old freaks out every time she sees one or two or three floating around our tech town. Don’t say I didn’t warn you!
Your comment is contradicting itself. Is it ugly or is it cool? Depends on your views. I personally think it’s weird looking but def an attention grabber, the more I see it on the road the more it’s growing on me. The kids love it.
cybertruck? Hello?
You can lease a 2024 polestar 2 ev for $249 per month. Much better car from a quality and luxury stand point. Tesla will always beat everyone with better tech. But it’s marginal at this point.
Sorry but the refreshed Tesla model 3 has a really nice interior, beats the polestar any day. But quality on the other hand is another sorry …