Tesla Model 3 already costs less than the Toyota Camry - Californians can buy an electric car for $25,240

Tesla Model 3 buyers in the US are entitled to a federal tax credit. But some states have their own subsidies. In California, for example, the Model 3 already costs less than a Toyota Camry.

Here's What We Know

The Tesla Model 3 costs $40,240 in base configuration. The federal deduction reduces the cost of the electric car by $7500. However, California residents can save another $7500. Thus, the car will cost them $25,240, while the Toyota Camry costs from $26,320.

In the middle of spring of this year, new rules for tax deductions took effect. As such, buyers of the Tesla Model 3 in Standard Range Rear Wheel Drive and Long Range All-Wheel Drive configurations could expect a $3750 subsidy.

The US company recently announced that buyers of either version are now eligible for a $7500 rebate. The US Department of Energy has already confirmed this information. Tesla has probably started using LG Energy Solution or Panasonic batteries along with CATL batteries to meet the requirement.

Source: Reuters