Tesla has adjusted its battery supply chain to ensure that all of its Model 3 vehicles qualify for federal US tax credits, which, combined with other tax breaks, could bring the price of the vehicle down to less than a Toyota Camry. Changes to battery sourcing rules in April lowered the tax credit for some versions of the Model 3, but Tesla has now confirmed that all versions qualify for the full credit. Analysts suggest that Tesla may have altered its supply chain to meet both battery mineral and component requirements for the subsidy. Panasonic, which has a US-based factory, is one supplier that meets federal requirements, while others do not. Tesla has also started delivering Chinese-made vehicles to Canada, which frees up capacity for US-made models.
Tax Benefits Make Tesla’s Model 3 More Affordable Than Toyota’s Camry
