Tesla’s sub-$25,000 mass-market electric car may still be a year or two away from launch. But it looks like some customers are already driving home a Tesla for a great bargain by combining inventory discounts with local and federal incentives.
Twitter user Zohar claims to have bought a spanking new Tesla Model 3 for $18,525 after taxes and fees in California. Sounds unreal, right? Before you scratch your head, we’ll break down the incentives Zohar put together, based on what he shared on the platform.
He purchased the rear-wheel-drive Model 3 with 18-inch wheels, draped in the midnight silver paint and a white interior, with an inventory discount of $4,120, for a sticker price of $37,120. A $500 referral reduced the price to $36,620 – the referral also gets you three months of free Full-Self Driving (FSD) capability.
Zohar shared that due to a unique financial situation from last year, he qualified for the top rebates in each program for low-income individuals. Although he maintained a good credit score and this year his income increased, due to which he would have the tax liability to benefit from the $7,500 federal clean vehicle credit.
Here’s a list of subsidies he was able to obtain:
- $7,500: California’s Clean Vehicle Rebate Project
- $4,000: Electrify Your Ride Program from Central Coast Community Energy
- $4,000: Monterey Bay Air Resources District - Electric Vehicle Incentive Program
- $7,500: Federal clean vehicle credit
That’s $23,000 of incentives, worth a whole new 2023 Toyota Corolla Hybrid. Excluding taxes and fees, his Model 3 cost him just $13,620, but with the $1,390 destination charges and 9.25 percent ($3,515) tax rate in his area, the effective price of his new Model 3 is just $18,525.
The Monterey Bay website lists a $2000 rebate for BEVs purchased on or after July 1, but Zohar was able to avail double the incentive because he was on a government program, he told InsideEVs. He also added that CVRP takes 100 days just to review your application, and you cannot apply unless you have already purchased an EV.
As a reminder, these incentives vary regionally and are determined based on income eligibility. Moreover, California is known to offer numerous incentives, and prices are likely to be different for residents of other states. Also, some subsidies cannot be obtained alongside others, which will also affect how much a buyer saves.
We reported in June about how some California residents could obtain the Model 3 for under $20,000 – less than half the base custom order price. Even if you’re not a California resident, the Model 3 and Model Y are likely to cost you significantly lesser than their MSRP with the current wave of inventory discounts combined with the federal tax credit.
What do you think about these generous rebate programs? Leave your thoughts in the comments.