Tesla Announces Two Model 3 Variants Will Not Be Eligible for the U.S. Tax Credit in 2024

December 13, 2023

By Kevin Armstrong

Model 3 Tax Changes

Not a Tesla App

Tesla has warned customers that the electric vehicle tax incentive may be cut. The company predicted the government would reduce it by half, but now the incentive is completely off the table for several EVs, including some Teslas.

Model 3 Variants and Tax Credit Eligibility

Tesla updated its configuration page, reflecting the impact on its popular Model 3 line. Notably, the Model 3 Rear-Wheel Drive (RWD) and Long Range variants, priced at $38,990 and $45,990, qualify for the $7,500 IRA tax credit only until December 31, 2023. On January 1, 2024, the $7,500 disappears. The Model 3 Performance variant, starting at $50,990, remains eligible for the full credit, and at current prices, will be cheaper than the AWD variant.

Under the Biden Administration, the U.S. government increasingly focuses on reducing reliance on foreign entities, particularly from countries like China, Russia, North Korea, and Iran. This focus influences the eligibility for the IRA tax credit, as the government seeks to limit EV battery materials and components sourced from these countries.

Broader Impacts and Challenges

The EV industry, including Tesla, faces challenges due to these new regulations. The rules necessitate a shift in the supply chain, particularly concerning battery materials and components, to meet the IRA's stringent requirements. This shift demands significant time and resources, potentially creating a gap between the regulations' implementation and the availability of compliant materials.

The electric car tax credit system is undergoing substantial changes, with specific requirements for battery components and critical minerals. For example, to be eligible for a $3,750 credit, a significant percentage of the battery components must be manufactured or assembled in North America. These percentages will increase progressively each year, reaching 100% by 2029. The critical mineral requirement follows a similar trajectory.

Qualifying Models

For consumers, this means adjusting expectations and possibly accelerating purchase decisions. The changes emphasize the importance of staying informed about evolving regulations and understanding how they impact the total cost of EV ownership.

According to the Street, the new regulations leave only 10 EVs eligible for the full $7,500 tax credit.

Tesla Model 3 Performance – $50,990

Tesla Model Y Performance – $52,490

Tesla Model X – $79,990

Cadillac LYRIQ – $58,590

Chevrolet Bolt EV – $26,500

Chevrolet Equinox EV – $48,995

Chevrolet Silverado – $51,895

Chevrolet Blazer EV – $60,215

Chrysler Pacifica PHEV – $53,425

Ford F-150 Lightning – $49,995

The IRA represents a significant shift in the U.S. government's approach to promoting EV adoption. While it aims to strengthen the domestic supply chain and reduce foreign dependencies, it also introduces complexities for manufacturers and consumers. Tesla's adaptation to these changes, consumer awareness, and strategic planning will be crucial in navigating this new era of electric mobility.

Tesla FSD in Europe: June Update

June 14, 2025

By Karan Singh

Not a Tesla App

The road to bringing FSD to Europe has been a long and complex one and filled with regulatory and bureaucratic hurdles. Elon Musk, as well as other members of Tesla’s AI team, have previously voiced their grievances with the regulatory approval process on X.

However, it appears that there is finally some progress in getting things moving with recent changes to upcoming autonomy regulations, but the process still seems slow.

Waiting on the Dutch

Elon commented on X recently, stating that Tesla is waiting for approval from Dutch authorities and then the EU to start rolling out FSD in Europe. Tesla is focusing on acquiring approvals from the Dutch transportation authority, which will provide them with the platform they need to gain broader acceptance in Europe. Outside of the Netherlands, Tesla is also conducting testing in Norway, which provides a couple of avenues for them to obtain national-level approval.

The frustration has been ongoing, with multiple committee meetings bringing up autonomy regulation but always pulling back at the last second before approving anything. The last meeting on Regulation 157, which governs Automated Lane Keeping Systems, concluded with authorities from the UK and Spain requesting additional time to analyze the data before reaching a conclusion.

Tesla, as well as Elon, have motioned several times for owners to reach out to their elected representatives to move the process forward, as it seems that Tesla’s own efforts are being stymied.

This can seem odd, especially since Tesla has previously demoed FSD working exceptionally smoothly on European roads - and just did it again in Rome when they shared the video below on X.

FSD Supervised testing in Rome, Italy

Pending regulatory approval pic.twitter.com/TXh3uQIfrx
— Tesla Europe & Middle East (@teslaeurope) June 12, 2025

DCAS Phase 3

While the approval process has been slow, Kees Roelandschap pointed out that there may be a different regulatory step that could allow FSD to gain a foothold in Europe.

According to Kees, the European Commission is now taking a new approach to approving ADAS systems under the new DCAS Phase 3 regulations. The Commission is now seeking data from systems currently operational in the United States that can perform System-Initiated Maneuvers and don’t require hands-on intervention for every request.

This is key because those are two of the core functionalities that make FSD so usable, and it also means that there may not be a need to wait years for proper regulations to be written from scratch. Now, the Commission will be looking at real-world data based on existing, deployed technology, which could speed up the process immensely.

What This Means

This new, data-driven regulatory approach could be the path for Tesla to reach its previous target of September for European FSD. While the cogs of bureaucracy are ever slow, sometimes all it takes is a little data to have them turn a bit faster in this case.

Alongside specific countries granting approval for limited field testing with employees, there is some light at the end of the tunnel for FSD in Europe, and hopes are that a release will occur by the end of 2025. With Europe now looking to North America for how FSD is performing, Tesla’s Robotaxi results could also play a role.

Tesla Launches 'TeslaVision' Contest With Big Prizes — See Last Year’s Winner [VIDEO]

June 13, 2025

By Karan Singh

Not a Tesla App

Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.

Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.

Announcing the TeslaVision fan video showcase

Tesla owners & supporters have always been able to see our products & mission for what they truly are.

Your word of mouth has made Tesla what it is today.

The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH
— Tesla (@Tesla) June 10, 2025

The Contest

The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.

Prizes

The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.

For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.

The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.

The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.

Hopefully, these winners will also have the opportunity to experience the Robotaxi network while they’re in Austin, as it’s expected to be opened to the public later this month.

Project Loveday

For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:

How to Enter

If you’re ready to start filming, here are the key pieces of information you’ll need to know:

Video must be 90 seconds or less
Video must be uploaded to YouTube with a public URL
Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.
Provide links to both social media posts in your submission to Tesla’s form
Provide your personal details in the form
You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.

You can find the official submission form and all region-specific details on Tesla's website.