Less Than Half Of Tesla's Latest Model 3 Parts Are Made In North America, NHTSA Filing Reveals
Portfolio Pulse from Anan Ashraf
Tesla Inc's Model 3 sedan has less than 50% of its parts made in North America, making it ineligible for federal EV tax credits under new guidelines aimed at reducing reliance on China. Other Tesla vehicles have a higher percentage of North American parts, with the Model Y, S, X, and the upcoming Cybertruck exceeding 50%. The Biden administration's guidance requires electric vehicles to have minimal battery components from 'foreign entities of concern' and significant North American manufacturing to qualify for tax credits.
February 26, 2024 | 7:37 am
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Tesla's Model 3, with less than half of its parts made in North America, is ineligible for federal EV tax credits, potentially affecting its competitiveness and sales. Other Tesla models remain eligible, highlighting the company's varied reliance on North American manufacturing.
The ineligibility of the Model 3 for federal EV tax credits due to its lower percentage of North American parts could negatively impact its market competitiveness and sales, especially in the U.S. market. This situation contrasts with other Tesla models, which remain eligible for the tax credits, indicating a strategic variance in Tesla's manufacturing and sourcing. The news could lead to short-term negative sentiment among investors, affecting TSLA's stock price.
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