You Could Probably Afford Tesla's New Car If It Comes Out On Time

Tesla's trying to make a car that's right for everyone's wallet. Let's just hope it's here in time to enjoy that extra federal tax break.
Posted at 7:24 PM, Feb 10, 2016

So you want an electric car and you want it to be a Tesla. But you also still want to pay your bills and have money left over to eat three times a day.

Tesla's gearing its next electric car, the Model 3, toward average consumers. And the price seems right: $35,000.

But Tesla wants to make sure you know there’s a chance you could get the new Model 3 for even cheaper. 

Several states offer big incentives for going green. Take Colorado, for example, drivers there can get $6,000 back in tax credits for buying electric. And Texas motorists could get up to $2,500 back in rebates.

And the tax credits don’t just depend on what state you live in. The IRS will reward plug-in electric vehicle owners with up to $7,500 as a sort of "thank you" for helping the environment.

But there’s a catch. These federal credits begin to expire after a manufacturer sells 200,000 vehicles for use here at home, and Tesla is getting kind of close. 

According to Bloomberg, Tesla could hit that 200,000 mark by mid-2018, and production for the new Model 3 is projected to start in 2017.

Though, Elon Musk and his team don’t have the best track record for being on time. So if the Model 3 ends up getting delayed, most of us could miss out on some of the extra tax credits.

Still, a $35,000 sticker price is way more affordable than Tesla’s other offers.

But if the company really does want to have a serious presence in the "mass market," it better get working. Chevrolet is ready to roll out its Bolt EV next year at a price of $37,500.

This video includes images from Getty Images.