Tesla shares are experiencing a surge today, with an increase of up to 4% in early trade, reaching highs not seen since early October of 2022.
Investor optimism is growing after the news that all Model 3 sedans now qualify for the full government electric vehicle tax credits.
This marks Tesla's ninth consecutive day of gains, making it the longest winning streak since January 2021.
At the start of this week, Tesla publicized on its website that all variants of the Model 3 sedan are now eligible for the full federal EV tax credit of $7,500.
By including the full federal tax credit, the Tesla Model 3 RWD now costs $32,740 for buyers who meet specific criteria, including MSRP caps and income restrictions.
But $32,740 is a comparatively reasonable price in the new vehicle market where the average cost is about $45,000, additional qualifies are available for EVs like the Model 3, further reducing prices.
In New York state, the Model 3 qualifies for up to $2,000 off through the Drive Clean Rebate, which is an additional incentive for buyers.
The California bids an even larger incentive—a $7,500 tax rebate that is subject to income and other demands.
With both the California state and federal incentives, the cost of the Model 3 drops to $25,240, which is reported to be lower than the cost of a new Toyota Camry, as noted by Reuters.