Tesla Model Y Actually Cheaper Than Model 3 After Rebates

Electric vehicle shoppers may be surprised to learn that Tesla’s higher-end Model Y SUV can actually cost less out-of-pocket than the automaker’s entry-level Model 3 sedan. 

That’s because all versions of the Model Y currently qualify for the full $7,500 federal electric vehicle tax credit, while only the performance variants of the Model 3 are still eligible.

With the tax savings, the Long Range Model Y is reduced to $41,490, while the Rear-Wheel Drive Model Y drops to $36,490.  By comparison, Long Range Model 3 retails at $42,990 with no access to rebates.

So paradoxically, buyers can currently get Tesla’s bigger, nicer, comfier Model Y for cheaper than the smaller Model 3 simply thanks to policy incentives.

It may seem counterintuitive, but the rebate structure means the SUV comes out cheaper right now despite the higher sticker price. We recommend all prospective buyers crunch the numbers with their specific situation, as state and local incentives can also shift the value proposition.

The current structure of EV rebates and credits creates scenarios like this where rearrangements in product pricing do not always align intuition. Shoppers looking to maximize their savings may end up with a very different vehicle than initially expected.

More Articles for You

New Kia EV5 Debuts In Singapore As First Model To Be Assembled There

Kia’s electric EV5 has finally been introduced into Singapore after making its debut at the local motor show earlier this …

New Morgan Supersport Blends Retro With 21st Century Tech

At Morgan, change happens gradually. Over the 116-year history of the British company, the cars’ appearance and feel have remained …

Toyota Planning Big EV Push With 7 Models For North America

There’s some big news from Toyota. According to Bloomberg, Japan’s No 1 carmaker plans to launch seven new all-electric cars …

Callum Designs Reveals Sensational Jaguar E-Type Restomod

Boasting an enviable portfolio that includes the Aston Martin DB7, Jaguar XK, and F-Type, former Jaguar design director and current …

Phantom Goldfinger Debuts At Villa d’Este Event To Celebrate Centenary

A double homage has just been paid to one of the world’s most spectacular cars at arguably the world’s premier …

Geely’s Radar King Kong PHEV Packs A Massive 914 Nm Of Torque

The handle may sound a bit over the top, but Geely really did just name its latest plug-in hybrid SUV …