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Tesla Model 3 ends up more affordable than Toyota Camry thanks to benefits

Thanks to the U.S. $7,500 tax deduction once again available for the entire Tesla Model 3 range, the base version of the electric car is now cheaper in California than the gas-powered Toyota Camry.

According to Reuters, the $7,500 deduction is summed up with an equal incentive provided by the California State authorities for a total discount of $15,000. This means that the base Model 3 goes down from $40,240 to just $25,240. The Toyota Camry starts from $26,320 before options.

Reuters believes the discount will bolster the customer interest towards the Model 3, which has been so-so lately due to zigzagging prices.

Earlier this year, the entire Tesla car lineup was found in violation of the U.S. requirement concerning battery origins. The cheaper models had their traction batteries imported from China, which meant they were not eligible for the full tax deduction. It now looks like Tesla readjusted its supply chains to bring back the benefit, although there has been no official comment.

Editor: Andrew Raspopov

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June 8, 2023


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