Cheapest States to Buy the New Tesla Model 3

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The new Tesla Model 3 has been unveiled and pre-orders have already begun rushing in with over 150,000 in the first 24 hours and recently reaching almost 400,000. As an industry leader in the electric vehicle (EV) market Tesla’s Model 3 news was eagerly anticipated due to its “more affordable” price point at $35,000 and recent history of strong and positive reviews with other models.

Here are some of the preliminary Model 3 specs that were released during the reveal:


model-3-specs

The main thing I noticed aside from the low price was the range in miles per charge. At 215 miles per charge the Tesla Model 3 is far beyond any of it’s competitors you will see below. Deliveries are scheduled to arrive by the end of 2017 pending the on-time construction of the new Gigafactory production facility in Nevada.

Available Incentives & Rebates for the Tesla Model 3

In addition to industry leading performance stats and lower market price the Tesla Model 3 is also eligible for additional rebates and tax incentive savings depending on the state you live in. While most plug-in hybrids are eligible for at least one incentive, fully electric vehicles are available to receive even greater savings and rebates. Here are the cheapest states to buy the Model 3 after the applicable taxes and incentives have been calculated:

State

State Sales Tax

State Rebate

Rebate Type & Info

Federal Rebate

Tesla Model 3 Cost After Savings

Louisiana

5.00%

$6,900+

Income Tax Credit

(increases up to $9,500 depending on battery size)

$7,500

$22,350.00

Colorado

2.90%

$6,000

Income Tax Credit

$7,500

$22,515.00

Maryland

6.00%

$3,000

Excise Tax Credit

$7,500

$26,600.00

Tennessee

7.00%

$2,500

Rebate (funds limited)

$7,500

$27,450.00

California

7.00%

$2,500

Rebate (funds limited)

$7,500

$27,450.00

Alaska

0.0%

$0

No Rebate

$7,500

$27,500.00

Montana

0.0%

$0

No Rebate

$7,500

$27,500.00

New Hampshire

0.0%

$0

No Rebate

$7,500

$27,500.00

Oregon

0.0%

$0

No Rebate

$7,500

$27,500.00

Pennsylvania

6.00%

$2,000

Rebate (funds limited)

$7,500

$27,600.00

California

7.50%

$2,500

Rebate (funds limited)

$7,500

$27,625.00

Utah

4.70%

$1,500

Income Tax Credit

$7,500

$27,645.00

Massachusetts

6.25%

$1,000

Rebate (funds limited)

$7,500

$28,687.50

Interested in moving to any of these states? Check out our article: The Best States to Live In– 2016 Edition

Industry Competitors

Nearly all the major auto manufactures have both fully electric and plug-in hybrid vehicle versions. The prices of these competitor vehicles prior to the Model 3 announcement were always substantially lower and marketed towards their already mass audiences. However, the performance ratings of these models could barely measure up to half those of the Tesla models. As a Ford enthusiast I personally hoped they would have been able to produce a true competitor but, nothing has been able to measure up to date. Here are some of the top EV competitor prices and comparative specs:

Competitor EV

Estimated Range

Starting Price

Lowest Estimated Price After Savings

2017 Chevy Bolt EV

200 miles

$37,500

$24,975

2016 Nissan Leaf

107 miles

$29,010

$16,060

Ford Focus EV

100 miles

$29,170

$16,228

2016 Kia Soul EV

93 miles

$31,950

$19,147

2016 Fiat 500e

84 miles

$32,300

$19,515

2016 Chevy Spark

82 miles

$25,995

$12,894

2016 BMW i3

(non-range extended)

81 miles

(150 miles with extender)

$42,600

$30,330

model-3-image

Final Thoughts on EVs

In today’s market you have a number of choices for an electric vehicle and typically your driving needs will steer your final decision. After calculating your own daily commute and determined the baseline requirements for a vehicle be sure to check out our article on the Ultimate Car Buying Savings Guide to get the best deal.

A few final points to keep in mind, first, the negotiation tactics referenced within the linked article above will typically only apply at standard car dealerships. Due to Tesla’s direct to consumer business model they do not bare the same overhead burden of the other manufactures. Second, be sure to keep in mind that as the EV market becomes more and more saturated the incentives and rebates will begin to phase out (this is considered the early adopter stage). Finally, remember that as each year passes manufactures will make gradual advancements in EV driving technology that will eventually level the playing field thus providing many more options to choose from.

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