Tesla Stock Surges 4%

New York, NY – Tesla shares (TSLA) are experiencing a significant surge today, soaring as much as 4% in early trade and reaching their highest levels since October last year. Investor optimism is growing following the news that all versions of the Model 3 sedans now qualify for the full federal electric vehicle (EV) tax credits. This development has sparked bullishness in the market, driving Tesla’s stock towards its ninth consecutive day of gains, marking its longest winning streak since January 2021.

Earlier this week, Tesla made an announcement on its website, stating that all variants of the Model 3 sedan now meet the criteria for the full federal EV tax credit of $7,500. Previously, only the cheaper Model 3 Rear-Wheel Drive (RWD) version qualified for half the amount. This update was confirmed by the federal government on its fueleconomy.gov website.

The federal government’s requirements for the EV tax credit mandate that 40% of the critical minerals used in the production of electric vehicles be sourced within the United States or a country with a free trade agreement. Additionally, 50% of the value of the battery components must be manufactured or assembled in North America.

While no specific reason was provided for the change, it can be presumed that Tesla has made adjustments to the sourcing of materials for the Model 3 RWD batteries or the assembly of battery packs. Prior to the announcement, it was reported that Tesla was utilizing LFP (lithium iron phosphate) battery cells supplied by China’s CATL.

The expanded qualification for the federal EV tax credits is expected to further boost the demand for Tesla’s Model 3 sedans and enhance the company’s position in the electric vehicle market. Investors and industry experts eagerly await the next developments in Tesla’s ongoing success story.

Source: Yahoo Finance