In California, Tesla Model 3 Might Be Cheaper To Buy Than Toyota Camry

It's possible for those who can combine two $7,500 incentives.

By: Mark Kane

Jun 8, 2023 at 9:08am ET

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Electric cars in California sell like hot cakes and this trend is not expected to change. In some cases, BEVs might be cheaper to buy than popular internal combustion engine cars.

Reuters recently noted that the entry-level Tesla Model 3 RWD, which starts at $40,240, is less expensive than the Toyota Camry ($26,320) if you deduct the $7,500 federal tax credit as well as the California tax rebate.

The Tesla Model 3 (all versions) already qualifies for the full $7,500 federal tax credit (instead of just $3,750 previously), which was officially confirmed on the fueleconomy.gov website.

California's Clean Vehicle Rebate Project (CVRP) of $7,500 is not for everyone because it depends on income and other requirements, but those who qualify for both save $15,000 or 37 percent of the $40,240 price tag for the Model 3.

This reduces the effective cost to $25,240 - less than the entry-level Toyota Camry. With the obligatory destination charge and order fee, it's $26,880.

The Tesla Model 3 is already more popular than the Toyota Camry in California. When prices between BEV and ICE models become comparable, electric cars are usually winning thanks to lower energy costs than fuel costs.

There are currently many states where the Tesla Model 3, boosted by incentives, is a really competitive model.

Prices

Model	Base Price	Dest. Charge	Tax Credit	Effective Price
2023 Tesla Model 3 RWD 18-inch	$40,240	+$1,640	$7,500	$34,380
2023 Tesla Model 3 RWD 19-inch	$41,740	+$1,640	$7,500	$35,880
2023 Tesla Model 3 Long Range AWD 18-inch	$47,240	+$1,640	$7,500	$41,380
2023 Tesla Model 3 Long Range AWD 19-inch	$48,740	+$1,640	$7,500	$42,880
2023 Tesla Model 3 Perf. LR AWD 20-inch	$53,240	+$1,640	$7,500	$47,380

* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).

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In the most extreme case of combo incentives in California, which we recently described, the Tesla Model 3 RWD might be purchased for just around $20,000.

Basic specs

Model	Drive	EPA Range	0-60 mph (sec)	Top Speed
2023 Tesla Model 3 RWD 18-inch	RWD	272 mi (438 km)	5.8	140 mph (225 km/h)
2023 Tesla Model 3 RWD 19-inch	RWD	267 mi* (430 km)	5.8	140 mph (225 km/h)
2023 Tesla Model 3 Long Range AWD 18-inch	AWD	333 mi* (536 km)	4.2	145 mph (233 km/h)
2023 Tesla Model 3 Long Range AWD 19-inch	AWD	315 mi* (507 km)	4.2	145 mph (233 km/h)
2023 Tesla Model 3 Perf. LR AWD 20-inch	AWD	315 mi (507 km)	3.1	162 mph (261 km/h)