All Tesla Inc.’s Model 3 sedans qualify for $7,500 in federal tax credits, a change that has recently appeared on a government site that keeps track of which EVs may qualify for the in-full or partial incentives.
Tesla
TSLA,
+1.88%
confirmed over the weekend that all Model 3 variants qualify, including those in inventory, Deutsche Bank analyst Emmanuel Rosner said in a note. Previously, only the base trim did, and for half the credits, or $3,750.
See also: U.S. car sales are stronger than a year ago, but rising interest rates could hit demand
Tesla “has not commented on what changes were made to battery components in order to meet the credit requirements, but we expect to learn more details in the coming weeks,” Rosner said.
The changes appear on fueleconomy.gov as last updated on Monday. The broad Inflation Reduction Act, signed into law in August, set aside billions for clean-energy incentives for homes and businesses.
The EV credits hinge on factors including final assembly location, battery component and minerals sourcing, and the EV buyer’s income.
Tesla has tweaked its EV prices, mostly cutting them, in recent months. The EV maker recently opened up its charging network to Ford Motor Co.
F,
+2.70%,
and is working on a second-generation EV that many hope will sell for about $30,000 or under.
The stock is up nearly 80% so far this year, far outstripping an 11% gain for the S&P 500 index.
SPX,
+0.29%
Read the full article here