Tesla Model 3 Could Lose EV Tax Credit, Report Says. The Stock Is Still Up.

Car companies loved it when the U.S. government rolled out its $7,500 tax credit for people who buy electric vehicles. Now the sector might not be so sure how it feels.

On Thursday, EV news outlet Electrek

, citing people familiar with the matter, reported that


(ticker: TSLA) expects its lowest-priced Model 3 sedan will lose eligibility for the full $7,500 tax credit, because the car uses LFP batteries sourced from China.