Still hesitant about switching to electric cars? Tax incentives could reduce the upcoming $35,000 Tesla Model 3 price by $10,000.
According to Bloomberg, “these tax incentives can knock off as much as $10,000,” with incentives beginning at $7,500. Where buyers live could change the amount of incentives available as well, with an additional $6,000 available to buyers in Colorado and $2,500 to buyers in California, Massachusetts and Tennessee. The only catch is that the federal tax break is set to decrease over time, so timing is important.
What’s troubling is that the Tesla Model 3 still hasn’t gone into production, which it is set to do by early next year. The car is set to be released by 2017 or 2018, but a lack of information and a slow production cycle has put fear into some of the potential buyers who have been waiting. Tesla’s spokeswoman Khobi Brooklyn has said that the Tesla Model 3 is on time, adding “Everyone is going to learn more about it at the end of March. That’s when we’ve committed to talking about it and giving a really great update, and that’s what we’re going to do.”
Tesla’s CEO Elon Musk has said that reservations for the Tesla Model 3 will also begin as early as next month, with pre-orders set to be accepted in Tesla stores on March 31st and accepted online the day after, on April 1st. All reservations will require a $1,000 deposit.
The Tesla Model S and X are both priced–at their cheapest–at about twice the cost of the Model 3. With the incentives included, this could be a great way to lure in customers who have been hesitant about jumping ship from gas cars to electric. But consumers also have to wonder if the much lower cost and incentives also mean much lower quality. With the company so tight-lipped it’s hard to get an idea, but if Tesla can keep to their deadlines we’ll be finding out a lot very soon.
Image Source: Gospel Herald Technology