There has been speculation about a cheaper Tesla on the horizon for many years now. But while we’re waiting for the inevitable “Model 2” or “Model C” or “Model Alpha” or whatever the more affordable mass market Tesla EV will be called, savvy EV buyers can actually pick up a brand new Tesla Model 3 today for well below the average new car price. In fact, if you live in New Jersey, you can get a new Model 3 for as low as $27,990 all-in (net cost after incentives and tax credits). That’s less than the cost of a Honda Accord — and almost as cheap as a Toyota Corolla — for an advanced fully electric sedan from Tesla!
Here’s a link to check out inventory Model 3 cars near you (including our referral code for an additional $500 discount):
How The Discounts Add Up
With Tesla’s recent announcement that all Model 3 and Model Y cars qualify for the full $7,500 federal tax credit, sales of Tesla’s current entry-level sedan have picked up significantly. Last quarter, Tesla hit record production and delivery numbers, thanks mostly to sales of the Model 3 and Model Y. If you pay at least $7,500 in federal taxes (and are under the current income cap), you can claim a $7,500 tax credit with the purchase of any Model 3 or Model Y.
If you buy an EV in the state of NJ, you qualify for an additional rebate of $4,000 on EVs with a list price below $45,000. This is part of the state’s Charge Up NJ program (find out more about eligibility guidelines here). This program was temporarily suspended earlier this year but resumed on July 13, 2023, in the state’s Fiscal Year 2024 program renewal.
Tesla is offering an additional $500 discount on new Model 3 and Model Y cars bought using a referral code from an existing Tesla customer. Tesla is also offering discounts of up to $3,000 on existing inventory Model 3s. Inventory cars are in stock on the lots at local Tesla stores. They qualify as new for warranty and tax credit purposes. And if you can find a demo or loaner car with a few miles on the odometer, you can save even more.
Beyond the discounts in selling price, you can save some additional smackeroos in sales taxes. While NJ collects a hefty sales tax of 6.625% on the sale of any new or used gas or hybrid car, the state has a sales tax exemption on EVs. So, your sales tax on that new Model 3 purchased in NJ will be 0.0%, or zero dollars and zero cents, whichever is lower.
As an example, let’s take a White RWD Model 3 currently in stock at the Springfield, NJ, store. Note that inventory and pricing varies from store to store (and from day to day), so this is simply used as an example from existing inventory (July 15, 2023):
- List Price: $41,240
- Destination Fee: $1,390
- Order Fee: $250
- Inventory Discount: -$2,890
- Referral Discount: -$500
- Federal Tax Credit: -$7,500
- Charge Up NJ Rebate: -$4,000
- Sales Tax: $0
- Net Price Paid: $27,990
Do I Have to Move to NJ to Get This Deal?
While NJ does offer some of the best incentives for new EV purchases, other states offer nice perks for buying an EV, including:
- California: Rebate of $2,000 up to $7,500 (income restrictions apply)
- New York: $2,000 instant rebate
- Colorado: $5,000 tax credit
- Connecticut: $2,250 to $4,250 credit (based on income)
- Delaware: $2,500 credit
- Maine: $1,000 to $7,500 credit (based on income)
- Massachusetts: $3,500 rebate
- Vermont: Up to $4,000 instant rebate (income restricted)
As always, YMMV (Your Mileage May Vary). Before buying a Tesla or any other EV, we’d encourage you to research the incentives and rebates available in your area. State and federal incentives change from time to time, based on budgeting and changes in legislation. In addition to saving money on the purchase price and taxes of the car, you may be eligible for discounts or rebates on the installation of EV charging hardware as well. And over time, you’ll save even more, as the fuel and maintenance costs of EVs are significantly lower than they are for gas cars.
As a reminder, in order to get the additional $500 referral discount on a Model 3 or Model Y (or $1,000 off a Model S or X), be sure to use a referral code link. If you have a friend or family member who owns a Tesla, ask them for their code. Or feel free to use ours: Buy a Tesla, Get a Discount with this Referral Link
If purchasing over chat, in store, or over the phone, use Tesla referral code john49040.
Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.
EV Obsession Daily!
Tesla Sales in 2023, 2024, and 2030
CleanTechnica uses affiliate links. See our policy here.