Unless you’ve got your eyes on an obscenely expensive performance or luxury nameplate like a Ferrari or Rolls-Royce, you likely care about a $7,500 tax incentive. Well, that’s how many would-be EV shoppers feel about choosing the right electrified ride. Fortunately for Tesla fans, three of the brand’s models qualify for the $7,500 federal tax credit in one trim or another. 

Of the popular Tesla models, the Model Y, Model 3 Long Range, and Model X qualify for a $7,500 federal tax incentive

The federal tax credit is important to EV shoppers. After all, it could mean the difference between a $45,000 battery electric vehicle (BEV) and a $37,500 prospect. As of the beginning of Q3 2024, three Tesla models qualify for the tax credit, in one configuration or another.

For starters, the Tesla Model 3, the brand’s most affordable nameplate qualifies for the credit at the Long Range and neck-snapping Performance trims. However, you won’t get the base-model Rear-Wheel Drive trim with the incentive. 

Beyond the Model 3, the Model Y EV SUV qualifies for the $7,500 federal tax credit at every trim, from the RWD Long Range to the Performance. As such, you can get a base Model Y for less than a Model 3 Long Range. Finally, the Model X All-Wheel Drive luxury EV SUV earns the credit as of mid-2024. 

Of course, the fact that only three Tesla models qualify in specific trims means there are a couple of standouts. For instance, the brand’s longest-running option, the Model S, won’t offer the $7,500 federal tax incentive for 2024. The same goes for the range-topping, suck-you-back-in-your-seat Model S Plaid. It’s not just the Model S Plaid, either; the Model X Plaid doesn’t qualify for the incentive as of Q3 2024. 

Source: U.S. Department of Energy