The Tesla Model 3 now qualifies for the full $7,500 EV incentive thanks to a new loophole in the tax incentive system.
While EV tax incentives have been a critical tool in helping countless buyers afford their first electric vehicles, with a recent constriction of qualifications, the options for buyers looking to take advantage of the full incentive amount have decreased significantly. However, according to a new report from Bloomberg, buyers have identified a new loophole allowing them to get the vehicles they want.
To give some important context, currently, only six vehicles qualify for the full $7,500 EV incentive in the United States. This includes some trims of Tesla Model 3 and Model Y, Chevy Bolt/Bolt EUV, Ford F-150 Lightning, Cadillac Lyriq, and Volkswagen ID.4. And while a larger number of vehicles qualify for at least half of the EV incentive, it is often not enough for many buyers.
The loophole identified by Bloomberg’s newest report is leasing. By choosing to lease a selected EV instead of purchasing it outright, a car buyer can still receive a full EV incentive for vehicles that would, under the new battery sourcing requirements, not qualify for the full amount or no incentive at all. Perhaps most notably, this includes vehicles like the Hyundai Ioniq 5 and Kia EV6, but this same trick can be extended to the base model Tesla Model 3, which currently only qualifies for half of the $7,500 EV incentive.
On top of receiving full tax incentives, customers would also benefit from lower monthly payments and other benefits that manufacturers offer leaseholders, such as complimentary maintenance and coverage for consumables like tires.
It should be noted that this loophole has its downsides thanks to the structure of leasing a vehicle. Foremost, buyers do not own the vehicle while leasing it, and when the lease is complete, typically after three years, they will have to return it unless they choose to pay a pre-negotiated price for it. Further, while owning the vehicle, manufacturers typically limit mileage to roughly 15,000 per year, with the owner paying a penalty for exceeding that amount.
Other vehicles that customers could now receive a full incentive for, as long as they stay under segment-specific price caps, include the Ford Mustang Mach-E, Toyota BZ4X, Polestar 2, and lineup of Rivian trucks, though this list is not exhaustive.
Bloomberg notes that, due to this new loophole, Ford’s credit division now believes a record number of its EVs will be acquired through lease instead of a traditional purchase. Specifically, the historic American automaker expects 60% of EVs to be purchased through lease agreements, though if EV incentives continue to tighten, that number could grow dramatically.
The EV tax credit changes currently preventing most EVs from receiving incentives are “battery sourcing” requirements. These new rules require an automaker to source at least 40% of its battery materials from the United States or a “free-trade agreement partner.” If it wishes to acquire the full $7,500 incentive, it must also source 50% of battery components from North America as well. These requirements will tighten dramatically over the coming years, eventually reaching 100% sourced from the designated areas listed above.
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Cybertruck
Tesla confirms date when new Cybertruck trim will go up in price
Tesla has officially revealed that this price will only be available until February 28, as the company has placed a banner atop the Design Configurator on its website reflecting this.
Tesla has confirmed the date when its newest Cybertruck trim level will increase in price, after CEO Elon Musk noted that the All-Wheel-Drive configuration of the all-electric pickup would only be priced at its near-bargain level for ten days.
Last week, Tesla launched the All-Wheel-Drive configuration of the Cybertruck. Priced at $59,990, the Cybertruck featured many excellent features and has seemingly brought some demand to the pickup, which has been underwhelming in terms of sales figures over the past couple of years.
Tesla launches new Cybertruck trim with more features than ever for a low price
When Tesla launched it, many fans and current owners mulled the possibility of ordering it. However, Musk came out and said just hours after launching the pickup that Tesla would only keep it at the $59,990 price level for ten days.
What it would be priced at subsequently was totally dependent on how much demand Tesla felt for the new trim level, which is labeled as a “Dual Motor All-Wheel-Drive” configuration.
Tesla has officially revealed that this price will only be available until February 28, as the company has placed a banner atop the Design Configurator on its website reflecting this:
NEWS: Tesla has officially announced that the price of the new Cybertruck Dual-Motor AWD will be increasing after February 28th. pic.twitter.com/vZpA521ZwC
— Sawyer Merritt (@SawyerMerritt) February 24, 2026
Many fans and owners have criticized Tesla’s decision to unveil a trim this way, and then price it at something, only to change that price a few days later based on how well it sells.
Awful way to treat customers – particularly when they already sent out a marketing email announcing the $59,990 truck…with zero mention of it being a limited-time offer.
— Ryan McCaffrey (@DMC_Ryan) February 24, 2026
It seems the most ideal increase in price would be somewhere between $5,000 and $10,000, but it truly depends on how many orders Tesla sees for this new trim level. The next step up in configuration is the Premium All-Wheel-Drive, which is priced at $79,990.
The difference between the Dual Motor AWD Cybertruck and the Premium AWD configuration comes down to towing, interior quality, and general features. The base package is only capable of towing up to 7,500 pounds, while the Premium can handle 11,000 pounds. Additionally, the seats in the Premium build are Vegan Leather, while the base trim gets the textile seats.
It also has only 7 speakers compared to the 15 that the Premium trim has. Additionally, the base model does not have an adjustable ride height, although it does have a coil spring with an adaptive damping suspension package.
Cybertruck
Tesla set to activate long-awaited Cybertruck feature
Tesla will officially activate the Active Noise Cancellation (ANC) feature on Cybertruck soon, as the company has officially added the feature to its list of features by trim on its website.
Tesla is set to activate a long-awaited Cybertruck feature, and no matter when you bought your all-electric pickup, it has the hardware capable of achieving what it is designed to do.
Tesla simply has to flip the switch, and it plans to do so in the near future.
Tesla will officially activate the Active Noise Cancellation (ANC) feature on Cybertruck soon, according to Not a Tesla App, as the company has officially added the feature to its list of features by trim on its website.
Tesla rolls out Active Road Noise Reduction for new Model S and Model X
The ANC feature suddenly appeared on the spec sheet for the Premium All-Wheel-Drive and Cyberbeast trims, which are the two configurations that have been delivered since November 2023.
However, those trims have both had the ANC disabled, and although they are found in the Model S and Model X, and are active in those vehicles, Tesla is planning to activate them.
In Tesla’s Service Toolbox, it wrote:
“ANC software is not enabled on Cybertruck even though the hardware is installed.”
Tesla has utilized an ANC system in the Model S and Model X since 2021. The system uses microphones embedded in the front seat headrests to detect low-frequency road noise entering the cabin. It then generates anti-noise through phase-inverted sound waves to cancel out or reduce that noise, creating quieter zones, particularly around the vehicle’s front occupants.
The Model S and Model X utilize six microphones to achieve this noise cancellation, while the Cybertruck has just four.
Tesla Cybertruck Dual Motor AWD estimated delivery slips to early fall 2026
As previously mentioned, this will be activated through a software update, as the hardware is already available within Cybertruck and can simply be activated at Tesla’s leisure.
The delays in activating the system are likely due to Tesla Cybertruck’s unique design, which is unlike anything before. In the Model S and Model X, Tesla did not have to do too much, but the Cybertruck has heavier all-terrain tires and potentially issues from the aluminum castings that make up the vehicle’s chassis, which are probably presenting some challenges.
Unfortunately, this feature will not be available on the new Dual Motor All-Wheel-Drive configuration, which was released last week.
News
Tesla Model S and X customization options begin to thin as their closure nears
Tesla’s Online Design Studio for both vehicles now shows the first color option to be listed as “Sold Out,” as Lunar Silver is officially no longer available for the Model S or Model X. This color is exclusive to these cars and not available on the Model S or Model X.
Tesla Model S and Model X customization options are beginning to thin for the first time as the closure of the two “sentimental” vehicles nears.
We are officially seeing the first options disappear as Tesla begins to work toward ending production of the two cars and the options that are available to those vehicles specifically.
Tesla’s Online Design Studio for both vehicles now shows the first color option to be listed as “Sold Out,” as Lunar Silver is officially no longer available for the Model S or Model X. This color is exclusive to these cars and not available on the Model S or Model X.
🚨 Tesla Model S and Model X availability is thinning, as Tesla has officially shown that the Lunar Silver color option on both vehicles is officially sold out
To be fair, Frost Blue is still available so no need to freak out pic.twitter.com/YnwsDbsFOv
— TESLARATI (@Teslarati) February 25, 2026
Tesla is making way for the Optimus humanoid robot project at the Fremont Factory, where the Model S and Model X are produced. The two cars are low-volume models and do not contribute more than a few percent to Tesla’s yearly delivery figures.
With CEO Elon Musk confirming that the Model S and Model X would officially be phased out at the end of the quarter, some of the options are being thinned out.
This is an expected move considering Tesla’s plans for the two vehicles, as it will make for an easier process of transitioning that portion of the Fremont plant to cater to Optimus manufacturing. Additionally, this is likely one of the least popular colors, and Tesla is choosing to only keep around what it is seeing routine demand for.
During the Q4 Earnings Call in January, Musk confirmed the end of the Model S and Model X:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Fremont will now build one million Optimus units per year as production is ramped.
Tesla confirms date when new Cybertruck trim will go up in price
Tesla set to activate long-awaited Cybertruck feature
