Tesla warns that Model 3 may lose US$7,500 credit over LFP battery as its second-hand prices fall most on record

[Redaktion]

The Treasury Department has to issue its final guidance on the made-in-America new EV tax credit requirements by the end of March, and Tesla warns that the Model 3 may no longer qualify then. Used Model 3 car prices may thus slump even more than their record drop in the past six months.

https://www.notebookcheck.net/Tesla-warns-that-Model-3-may-lose-US-7-500-credit-over-LFP-battery-as-its-second-hand-prices-fall-most-on-record.702783.0.html

[A]

You have things backwards, you mean second hand prices would go up? Think about it logically, let us say a car costs 40k. You get 7.5k tax credit on new one. Would you pay even 33k for a 1 year used one? Being eligible for the tax credit hurts your resale value the same as it costs to buy. This is why Tesla Model 3 resale value dropped in the past 6 month in the first place, because of the tax credit as Tesla was not eligible for it and now became eligible

[D]

You definitely have this backwards.  Used prices will potentially go up by the tax credit amount. The $35k effective price for a new one is the maximum/ceiling value of a used one, but after the tax credit goes away the new maximum value increases to the $43k.