2024 Model 3 LR AWD is now eligible for the $7500 tax credit [posted 06/17/2024]

[sperkin]

WHAT new batteries that qualify?

Because there aren't any that exist

Nor are they any factories to build them right now.

As expected. New batteries are coming and Model 3 is eligible for the $7,500 credit now.

Tesla Model 3 Long Range gets access to federal tax credit, now starts at $40,000

Tesla Model 3 Long Range has now officially become eligible for the $7,500 federal tax credit for electric vehicles. With...

electrek.co

 

[Seattle]

As expected. New batteries are coming and Model 3 is eligible for the $7,500 credit now.

Tesla Model 3 Long Range gets access to federal tax credit, now starts at $40,000

Tesla Model 3 Long Range has now officially become eligible for the $7,500 federal tax credit for electric vehicles. With...

electrek.co

They must have changed something about the batteries but we don't know what it is. Could it be different mineral sources, but still made out of the US? That would seem to not qualify for the 7500.

 

[OCR1]

They must have changed something about the batteries but we don't know what it is. Could it be different mineral sources, but still made out of the US? That would seem to not qualify for the 7500.

I don’t think anything changed. I ordered one today and they scheduled me for pickup on Thursday. The birthdate on the car was May 31st in Fremont. So unless they changed out the batteries all the way back to May in anticipation of the revised guidelines, it would seem the more logical explanation is that the revised EV requirements allowed the current LR M3 to qualify. RWD still uses LFP batteries so those are not eligible for the credit. I’m not sure who would buy one in the US at this point.

 

[terranx]

I’m not sure who would buy one in the US at this point.

I imagine mostly people who don’t qualify for the tax credit, but I imagine it’s a relatively small group who don’t qualify for the credit who also wouldn’t just spend the extra money to get the LR anyway.

Maybe they’ll eventually replace it with a LR RWD like they did on the Y

 

[OCR1]

I imagine mostly people who don’t qualify for the tax credit, but I imagine it’s a relatively small group who don’t qualify for the credit who also wouldn’t just spend the extra money to get the LR anyway.

Maybe they’ll eventually replace it with a LR RWD like they did on the Y

Or maybe just lease it for the $299 promotion which does still qualify for the tax credit.

 

[canasion35]

 

[DrChaos]

They must have changed something about the batteries but we don't know what it is. Could it be different mineral sources, but still made out of the US? That would seem to not qualify for the 7500.

No, the Treasury department loosened the interpretation of regulations to allow more Chinese graphite.

 

[E90alex]

As expected. New batteries are coming and Model 3 is eligible for the $7,500 credit now.

Tesla Model 3 Long Range gets access to federal tax credit, now starts at $40,000

Tesla Model 3 Long Range has now officially become eligible for the $7,500 federal tax credit for electric vehicles. With...

electrek.co

They must have changed something about the batteries but we don't know what it is. Could it be different mineral sources, but still made out of the US? That would seem to not qualify for the 7500.

I would guess reduced demand allowed them to put surplus Panasonic packs in the 3 LR.

 

[Thysanopter]

No, the Treasury department loosened the interpretation of regulations to allow more Chinese graphite.

This was outright banned, and since May 3rd Chinese critical minerals are allowed. The timeline checks out, manufacturers had to submit some plan to Treasury, there is a chance these are the same batteries, just fall under the new regulation. I hope.

 

[Knightshade]

As expected. New batteries are coming

No, they aren't. As already explained- there'd be no place for them to come from

As noted above they seem to have managed to qualify the existing batteries under the guidelines instead for the imported 2170s (but not the LFPs in the RWD 3)

 

[dbradfw]

I'm debating ordering my first tesla. Need a new car around EOY or first of next. Almost pulled the trigger on the M3P but really didn't know how well I'd like the setup for 15k-17k miles a year.
The LR definitely seems like the better setup for commuting with the 18's and longer range. However, hard to look past the M3P seats and other specific ad ons. I would qualify for tax credit but prefer White in color. Hmmm!?? Decisions... Decisions.. lol

 

[sperkin]

They must have changed something about the batteries but we don't know what it is. Could it be different mineral sources, but still made out of the US? That would seem to not qualify for the 7500.

They probably made the cut off for the material % sourced from the US.

 

[sperkin]

I don’t think anything changed. I ordered one today and they scheduled me for pickup on Thursday. The birthdate on the car was May 31st in Fremont. So unless they changed out the batteries all the way back to May in anticipation of the revised guidelines, it would seem the more logical explanation is that the revised EV requirements allowed the current LR M3 to qualify. RWD still uses LFP batteries so those are not eligible for the credit. I’m not sure who would buy one in the US at this point.

Did they reduce the $7,500 at point of sale? Interested to see what happens on Thursday.

 

[sperkin]

No, they aren't. As already explained- there'd be no place for them to come from

As noted above they seem to have managed to qualify the existing batteries under the guidelines instead for the imported 2170s (but not the LFPs in the RWD 3)

It's the same battery made from the same place. It just used more materials from US to make them. It's like buying water from Costco instead of fiji to make lemonades.

 

[Thysanopter]

It's the same battery made from the same place. It just used more materials from US to make them. It's like buying water from Costco instead of fiji to make lemonades.

How do you know, any source?

 

[Jeremy3292]

Wow so much misinformation here holy crap. Please actually read IRS regulations before spouting nonsense. The new treasury rules are literally related to less than 2% of an EV battery. It has nothing to do with the M3 LR battery.

Tesla put the same Panasonic cells from Nevada into the M3 LR. Same cells as in the M3P and every Model Y trim. They used to do this for the M3 LR before 2023. My 2021 LR has the same Panasonic cells, just not the latest ones. When Tesla scaled up the Model Y and it became the best selling car in the world, they ran out of cells for the M3 LR, so they imported LG cells from Korea. Now that the Model Y isn’t selling and they have so much inventory, that freed up extra cells for the M3 LR. A no brainer decision.

 

[sperkin]

How do you know, any source?

No, but to qualify you need 60% components from US and 50% raw material from the US. They were over because they were going by 50/40 when the 1st year was ignored (not shifted as they thought). They just needed to sell off what they had and source more from US to make the new batch of batteries. This was probably done a few weeks ago and waiting on federal approval.

Too bad, this is at point of sale so people who bought before today do not get the credit.

My whole point earlier this year was this was going to happen. Tesla will not let $7,500 sit on the table and will hit the 60/40 mark to make the 3 qualify.

 

[Knightshade]

You:

As expected. New batteries are coming

Also you:

It's the same battery made from the same place.

Pick a lane my dude.

Wow so much misinformation here holy crap.

Indeed. You provide some yourself below:

Now that the Model Y isn’t selling and they have so much inventory, that freed up extra cells for the M3 LR. A no brainer decision.

Tesla sold more Model Ys in Q1 of 2024 in the US than they did Q1 of 2023.

Sales of the Y were up not down YoY in the US.

https://insideevs.com/news/716123/tesla-model-y-one-third/

despite the EV market slowdown, the Model Y still recorded a 1.4% Q1 sales increase year-over-year

Too bad, this is at point of sale so people who bought before today do not get the credit.

FWIW you can still take the credit when you file your taxes after Dec 31 if you want, POS is simply an option not a requirement (though the bit where you don't need $7500 in liability only applies to POS).


So if the actual reasoning for the LR now qualifying is the IRS decided the composition of the existing, imported, LR 2170s, actually qualifies (it's NOT clear if that's what happened), then potentially buyers could file for it in January if they already took delivery of such a car.... last year a similar thing happened with Tesla announcing the RWD would qualify retroactively for sales back to Jan 1 as well when they got around the requirements for that car with new IRS guidance.

 

[Thysanopter]

No, but to qualify you need 60% components from US and 50% raw material from the US...

The sticking point was rare minerals sourced from China. This was banned completely. As of March 3rd is not anymore. If you look at window stickers, Tesla was fine in the percentage department. So the question is again - do you know that the battery was changed?

 

[Thysanopter]

Tesla put the same Panasonic cells from Nevada into the M3 LR.

Source?