Elon Musk's Tesla warns that some of its models will not be eligible for the full $7,500 federal electric vehicle tax credit starting next year.

FEOCs operate in or have ties to China, Russia, North Korea, and Iran. Practically speaking, vehicles bought in 2024 won’t get all of the $7,500 tax credit if they have battery components or battery materials from China because Chinese battery makers and battery material companies are FEOCs.

Federal tax credit for the cheapest Tesla car, the Model 3 Rear-Wheel Drive, will reduce to $3,750 as of January 1st, 2024.

The Biden administration has proposed new rules that could make it harder for electric vehicles to qualify for a full $7,500 federal tax credit.

Tesla has confirmed that it is officially losing half of the $7,500 tax credit on two Model 3 trims starting next year. Buyers of all Model 3 vehicles, depending on their own eligibility based on income, have had access to a $7,500 federal tax credit since the reform of the electric vehicle incentive program that was implemented in 2023.

Tesla has announced that two of its models, the Model 3 Rear-Wheel Drive and Model 3 Long Range, will no longer qualify for the full $7,500 federal tax credit starting

If you're pondering whether to buy an electric vehicle, now might be the time as some of the EV tax credits for certain brands will be slashed soon. I'm a Mechanic: Here Are 8 Cars I Would Buy and