In California, the Tesla Model 3 costs 20,000 euros. Here’s why!

American protectionism allows, for electric vehicles produced in the United States, to see their price reduced by half. Just like with Tesla in California.

At this rate, the transition from internal combustion engine cars to electric will cost hundreds of billions for the states. It is even a race forward since the schemes are effective in disguising ecological bonuses as trade dumping. Thus, while France and President Emmanuel Macron push in Europe for bonuses to be reserved for electric vehicles produced within the EU, this method is already in effect in the United States. A form of protectionism aimed at keeping Asian and European manufacturers at bay… unless they decide to invest in local production. So why is Europe unable to implement the same mechanism that could prevent a massive outflow of capital abroad (hello trade balance!) and create hundreds of thousands of jobs across the continent?

In California, as long as your individual income is below 150,000 euros per year (yes, you read that right), and the vehicle you choose is produced in the US, Mexico, or Canada, costs less than $55,000 (51,280 euros) for a car or $80,000 (74,500 euros) for a pickup, and weighs less than 6.35 tons (remember, we’re in the US!), you can benefit from a federal bonus (from the country) of $7,500 (7,000 euros). An additional $7,500 is provided by the state of California. Finally, according to your regional county, other subsidies may be added. For example, the San Joaquin Valley, which connects Los Angeles and San Francisco, gives a reward of $3,000 (2,800 euros) for purchasing an electric vehicle. Therefore, the total rebate reaches $18,000 (16,800 euros).

Finally, because new Tesla stocks are substantial across the Atlantic, the immediately available units that do not match your dream configuration are listed at $37,830 (as of June 6, 2023), which is 35,270 euros… subtracting the 18,000 euros of aid, the price halves to approximately $19,820, or 18,500 euros for a Tesla Model 3 Rear-Wheel Drive.

Note, however, that in the United States, the prices of many consumer goods are displayed “pre-tax,” since VAT varies from state to state. In California, it is 8.5%, which raises the final price of the Tesla Model 3 Rear-Wheel Drive to about 20,000 euros. The average VAT in the US is 6%, ranging from 0% in Oregon, Alaska, Montana, New Hampshire, New Mexico, and Delaware to 11.5% in Illinois.

As a reminder, in France, a similar Tesla Model 3 Rear-Wheel Drive was listed, in June 2023, at €41,990. After deducting the ecological bonus (5,000 euros), the cost comes to €36,990.

READ ALSO: Can Tesla be excluded from the ecological bonus?