Are you wondering why some countries are so successful in electrification! A great answer can be found in California, where the new Tesla Model 3 can cost a customer only half the retail price after deductions. And where is Europe and where is Slovenia?!
Thanks to state and federal incentives in California, the price of a standard Tesla Model 3 is now less than half its retail price. California tax breaks and federal clean vehicle "credits," or subsidies, make some electric vehicles much more affordable. The price of a Tesla Model 3 can be cut by more than half in certain counties in California.
California and federal incentives for electric vehicles have put Tesla's Model 3 at a new, much more affordable price point. Standard Model 3 with an EPA-estimated range of 272 miles (about 438 km) and acceleration from 0 to 60 mph (about 97 km/h) in 5.8 seconds, normally priced at $40,240, it can be discounted to a whopping $19,830 in select California counties dollars.
The starting price of the Tesla Model 3 can be used referral links and discounts in stock on the site WaitingForTesla reduced to $37,830. Factoring in the $7,500 federal tax credit that select electric vehicles qualify for, plus an additional $7,500 from the California Clean Vehicle Reimbursement Project (CVRP), the price can drop to $22,830.
The federal tax credit does not apply to all individuals and car models. The vehicle must be manufactured in the United States, Mexico or Canada and must meet certain battery requirements. CVRP, however, is available to those who live or do business in California and meet certain income requirements. Higher income brackets qualify for a refund of $2,000, while lower and middle income brackets can receive a larger refund of $7,500.
In addition, the inhabitants of the valley can San Joaquin they get an additional $3,000 grant from their local air pollution control district if they opt for a zero-emissions vehicle. With all the incentives combined, the price of the Model 3 can be as low as $19,830. And that's not just the case for the Model 3, but for many other electric cars, including the Ford Mustang Mach-E, Chevrolet Bolt EV, and Ford F-150 Lightning, among others.
Even though you may not reside in the San Joaquin Valley, the federal tax credit and CVRP can help you save a significant amount of money on your electric car purchase. Several other US states offer tax credits, including Colorado, which has the nation's most generous tax credit at $5,000.
In light of these ametric incentives for electric vehicles we cannot pass comparison with the best practices in Europe. Many European countries are leading the way in the introduction of electric vehicles, which is often the result of large-scale government incentives. For example, Norway is highlighted globally as a role model, where nearly 75% of new cars sold in 2022 were electric. This is partly due to extensive government incentives, including VAT and import tax exemptions for electric vehicles.
Germany is another country that has taken a big step forward by introducing large-scale incentives. In 2020, the government doubled subsidies for electric vehicles to 9.000 € for electric vehicles with a range of up to 400 km. These are just some examples of how European countries are promoting the transition to cleaner vehicles.
There are many differences between countries and the approach depends on many factors, including political will, economic conditions and environmental objectives. Regardless, these incentives are key to accelerating the transition to electric vehicles and achieving CO2 reduction targets.
The electric revolution is here, and with the help of state and federal incentives, it's now more affordable than ever. Wondering if the current array of federal and state incentives for electric vehicles in the USA sufficient? As always, the answer depends on the individual. In any case, these incentives are a big step forward towards a greener and more sustainable future for our planet.
