While an affordable $25,000 Tesla is a dream for the world, this might not be the case for California residents. Yes, in California, you can purchase a Tesla Model 3 for almost $25k, the most affordable Tesla ever.
Even though the federal tax credit has already been phased out for Tesla vehicles, California still offers a good number of perks to lower the price of a Tesla or any other electric vehicle significantly. These include tax credit programs and cash rebate schemes as well.
Other states also offer incentives for transitioning to a zero-emissions vehicle but California is the torch bearer in this sphere.
When you order a Tesla Model 3, Y, S, or X from the state of California, your purchase order automatically includes a $1,500 California Clean Fuel Reward deduction (see example below) — no need to apply for this grant separately.
After the recent price increase, the purchase price of a Tesla Model 3 Standard Range Plus is now $38,490. After the $1,500 California Clean Fuel Reward deduction, the price goes down to $36,999 — this was only the first step, there’s more.
California residents can also apply for a $5,000 grant offered by the Clean Vehicle Assistance Program (CVAP). This program has eligibility criteria based on individual or family income. Reportedly, approval for this grant usually takes 2 to 3 months. Once you have the approval, you can bring the papers to the Tesla store for processing.
The California Clean Vehicle Assistance Program also offers a $2,000 grant for the installation of charging infrastructure at your home. So this makes a total CA Grant of $7,000 for eligible applicants.
Bay Area residents have another option called the Clean Cars For All program. If this grant is stacked with the above $7k grant, the max of $9,500 rebate can be availed.
This is not the end of Cali perks, there’s another grant named the California Clean Vehicle Rebate Project (CVRP), and luckily, the Tesla Model Y and Model 3 both are on the list of eligible vehicles. This is an additional $2,000 rebate for which you can apply online. When approved, you’ll get a $2,000 check in your mailbox — simple and straight.
The CVRP grant also offers an additional $2,500 rebate for low and moderate-income households in the San Joaquin Valley and San Diego County. The CVRP website shows the following notice for applicants:
The option to get preapproved through Rebate Now is currently available for increased rebates to low and moderate-income residents in San Diego County and the counties that make up the San Joaquin Valley who have not yet purchased or leased their vehicle.
Source: California CVRP website
The following table shows a complete break-up of these grants to make sense:
| Grant | Value ($) |
|---|---|
| CA Clean Fuel Reward | $1,500 |
| CA Clean Vehicle Assistance | $7,000 |
| CA Clean Vehicle Assistance (Bay Area) | $9,500 |
| CA Clean Vehicle Rebate Project | $2,000 |
| CA Clean Vehicle Rebate Project (San Joaquin / San Diego) | $4,500 |
| Total (non-Bay Area) | $10,500 |
| Total (Bay Area or San Joaquin & San Diego) | $13,000 |
Model 3 Standard Range Plus cost after grants and rebates
| Area | Price |
|---|---|
| Bay Area | $38,450 – $13,000 = $25,450 |
| San Joaquin / San Diego Counties | $38,450 – $13,000 = $25,450 |
| Non-Bay Area residents | $38,450 – $10,500 = $27,950 |
If President Biden’s $174B electric vehicle incentives program brings back the $7,500 federal tax credit to Tesla, the cost of an SR+ Model 3 can go down under $18k.
If the rumors of the Biden administration increasing the federal EV tax credit to $10,000 are proven to be right, the Tesla Model 3 and even Model Y will become more affordable.
With the current lowest cost of $25,450, assuming all rebates and rewards are availed, a Tesla Model 3 SR+ price in California becomes very close to a 2021 Honda Accord.
Price parity with ICE cars is going to make EVs more desirable, and Teslas even more.
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