California's $2,000 CVRP Rebate Makes Tesla Model 3 RWD A $31K Car

Provided the customer qualifies for both federal- and state-level incentives.

2022 Tesla Model 3

Dan Mihalascu

By: Dan Mihalascu

Feb 20, 2023 at 4:28pm ET

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Tesla's significant price cuts announced last month in the US have made most Model 3 and Model Y variants eligible for the new federal tax credit of up to $7,500, thus potentially lowering prices even further.

But on top of the federal tax credit, some states provide rebates on their own, and some of the most generous are in California, the country's largest EV market.

Last week we reported that some Tesla Model 3 and Model Y variants have become eligible for the California Air Resources Board's Clean Vehicle Rebate Program (CVRP), which consists of a $2,000 rebate.

The program has current MSRP limits set at $45,000 for cars and $60,000 for SUVs, trucks and vans, which means that the Model 3 starting at $42,990 and the Model Y starting at $54,990 qualify for the additional $2,000 rebate in the Golden State.

After Tesla reapplied for eligibility, it has started displaying the potential savings on its website, and they do look attractive – particularly for the Model 3.

Gallery: 2022 Tesla Model 3

2022 Tesla Model 3

According to the online configurator (via Teslarati), the $7,500 federal tax credit and the $2,000 CRVP bring the base Tesla Model 3 RWD's price down to $30,990 in California. That's really good value for consumers who are eligible for both the federal- and state-level incentives.

Tesla also lists an "Estimated 6-year gas savings" of $4,200 to the amount, which brings the Model 3's adjusted cost with all potential savings to just $26,790 before options. Of course, that's an estimate and can't be taken for granted.

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The Tesla Model Y configurator also sees a notable price adjustment with potential savings. The base Model Y Long Range is listed with a price of just $42,990 for qualified California customers. As with the Model 3, Tesla lists estimated gas savings of $5,400 over six years and a price of $37,590 when those are factored in.

To be eligible for California's $2,000 rebate, applicants must have a gross annual income below $135,000 for single filers, $175,000 for head-of-household filers, and $200,000 for joint filers. Applicants with household incomes of less than or equal to 400 percent of the federal poverty level are also eligible for an additional rebate of $2,500.