Tesla Model 3 EV becomes the most affordable ever in this country. Here's how

California’s tax rebates and the federal clean vehicle credit in the US have made select electric cars significantly more affordable for some buyers. Tesla Model 3 is one among these models, and it has witnessed a significant price cut owing to the incentives, making it the most affordable ever. The pure electric Tesla compact sedan is now priced at $19,830.

A standard-range Tesla Model 3 can cost less than half of its MSRP in certain districts in California. The base rear-wheel-drive Model 3, with a 437 km range and 0-96 kmph in 5.8 seconds, starts at $40,240. Factors like California's two tax credits, along with the US federal tax credit, can help the Tesla Model 3 price to plummet to $19,830. However, to get this benefit, the consumer has to qualify for the programs.

Let's take a look at how the price of the Tesla Model 3 could come down this much. The base variant of the Tesla Model 3 starts at $37,830 with referral links and inventory discounts via the WaitingForTesla website. By applying the $7,500 federal tax credit that select electric cars qualify for, along with another $7,500 incentive from California's Clean Vehicle Rebate Project (CVRP), the price can come down to $22,830. Additionally, San Joaquin Valley residents can obtain an additional $3,000 incentive from the local air pollution control district for choosing a zero-emissions vehicle. This can bring down the price of the Model 3 to a lucrative $19,830.

However, there are some catches. The federal tax credit doesn't apply to all individuals and car models. The EV must be made in the US, Mexico or Canada to be eligible for the tax credit. Additionally, it must meet certain battery requirements. Besides that, to qualify for CVRP, the consumer has to be based in California or have a business there. Also, the consumer has to meet specific income eligibility requirements. While higher income brackets people qualify for a $2,000 rebate, lower and middle-income individuals can get an increased rebate of $7,500.