Tesla Model 3 loses tax break eligibility due to new regulations

Under the latest regulations, Tesla's cheapest model, the Model 3 compact electric sedan, will no longer be eligible for tax breaks under the Inflation Reduction Act in 2024. The change is due to new requirements for the procurement of battery materials, limiting companies' reliance on certain countries. Currently, the world's largest lithium iron phosphate battery manufacturers are mainly concentrated in China, including BYD and CATL, two of Tesla's suppliers.