$39,900 for a Model 3 is Federal Magic

$39,900 for a Model 3 is Federal Magic

A fellow club member of mine was interested in my Model 3 back in August 2018. He's the manager of a nearby federal facility and has been encouraged by his superiors to give electric vehicles a try. But (there's always a but when dealing with the Feds) he's limited by a $40,000 spending limit per vehicle. Above $40k, he must produce a forest of paperwork for each vehicle and wait for a response.

I looked at the Model 3 configurator and saw that the base price is now $39,900. If you know federal employees interested in Tesla's, pass on the good news.

reed_lewis | 18 June 2019

Of course you are referring to having to government purchase the car, correct?

tew ms us | 18 June 2019

@reed Correct; car is purchased by the government for its use.

Something that may be a deal breaker - delivery charge | 18 June 2019

Why not buy an M3 SR? Cost I think is now $35,400 (It's not available on-line). You could get AP ($2K) or pick a non-standard color and destination charge and still be below the $40K threshold. Not sure how taxes work, but I expect it is not subject to state taxes. At the same time, no federal or state rebates.

tew ms us | 18 June 2019

@TeslaTap That's good info; I'll pass it on. We're about 400 miles from the nearest Tesla Gallery, so that may snarl things on my friend's end. | 18 June 2019

For the 3 SR, you can order by phone or at a store - just not the web.

greg | 18 June 2019


Does the Federal Government get to enjoy the Federal Tax Credit?

Or does it not "pay enough Federal Tax" to qualify?

If it does, then presumably, the end price is even lower?

Or is this a momentous paper shuffling exercise that if tried will result in the Model 3 attempted purchase paperwork disappearing into a puff of greasy pencil smoke and red-ink from all the furious bureaucrats stamping the request with "denied" at once.

tew ms us | 19 June 2019

No tax credits for the Feds. No state sales taxes nor ad valorem taxes.

Federal managers get a budget with a line item for automobiles. As long as they keep the price below $40k per auto, they don't need any further authorization to purchase.