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Tesla has made changes to its battery supply chain that bring some of its vehicles within the guidelines qualifying them for federal U.S. credits.

Tesla's Model 3 vehicles now qualify which could lower its price to less than that of a Toyota Camry.

The Biden administration on Tuesday confirmed that all Tesla Model 3 vehicles now qualify for $7,500 electric vehicle consumer tax credits after two of the three versions were eligible for half the credits.

New battery rules went into effect in April that lowered the credit of the Model 3 Standard Range Rear-Wheel Drive and Long Range All-Wheel Drive to $3,750.

TESLA OWNERS SUE CLAIMING SOFTWARE UPDATE KILLED EV BATTERY LIFE

Tesla Model 3 vehicles are shown for sale at a Tesla facility in Long Beach, California. (REUTERS/Mike Blake / Reuters Photos)

The government confirmed the change on its fueleconomy.gov website.

A Model 3 starts at $40,240 and the price may fall to $25,240 when the $7,500 federal tax credit and another $7,500 from the California tax rebate kick in, depending on income and other requirements.

Toyota's Camry is listed at $26,320 and higher.

TESLA RAISES US PRICES FOR MODEL S AND X VEHICLES, REVERSING SIX CONSECUTIVE PRICE CUTS

Tesla CEO Elon Musk alongside the electric automakers logo. (Getty Images/AP / Getty Images)

In March, the Treasury Department outlined the sourcing requirements for critical minerals and battery components automakers must use in EV batteries to ensure eligibility for the full $7,500 credit. 

The Inflation Reduction Act President Biden signed into law in August was crafted to bolster domestic EV battery supply chains and reduce reliance on hostile nations like China.

A Tesla electric car sits in a charging station at a dealership. (AP Photo/Steven Senne / AP Images)

BIDEN ADMIN MOVES TO LIMIT EV TAX CREDIT ELIGIBILITY IN POTENTIAL BLOW TO CLIMATE AGENDATicker Security Last Change Change % TSLA TESLA INC. 221.31 +3.70 +1.70%

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Tesla may have dropped CATL in favor of Panasonic or LG Energy Solution for U.S.-made Model 3 Rear-Wheel Drive, the cheapest version, Benchmark Mineral Intelligence (BMI) analyst Caspar Rawles said.

Reuters contributed to this report.

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Business

Trump’s tariffs are back – here’s who is in his sights this time

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'A BIG DAY FOR AMERICA!!!' - Trump's tariffs are back, and will affect dozens of countries

It is “Liberation Day” III – the third tariff deadline set by Donald Trump.

Countries without bilateral trade agreements will soon face reciprocal tariffs – ranging from 25% to 50% – with a baseline of 15% to 20% for any not making a deal.

He has delayed twice, from April to July and from July to August, but hammered this date home in his trademark caps-on style: “THE AUGUST FIRST DEADLINE STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!”

“Will not be extended” for anyone but Mexico, it seems. The country secured a 90-day extension at the last minute, with Mr Trump citing the “complexities” of the border.

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Explained: The US-UK trade deal

By close of business on the eve of deadline, he had a handful of framework deals – some significant – including the UK (10%), the EU, Japan and South Korea (15%), Indonesia and the Philippines (19%), Vietnam (20%).

On the EU agreement, which he struck in Scotland, the president said: “It’s a very powerful deal, it’s a big deal, it’s the biggest of all the deals.”

But what happened to the “90 deals in 90 days” touted by the White House earlier this year?

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The short answer is they were replaced by letters of instruction to pay a tariff set by the US.

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How Trump 2.0 changed the world

Amid of flurry of late activity, the US played hardball with major trading partners like Canada.

“For the rest of the world, we’re going to have things done by Friday,” said US Commerce Secretary Howard Lutnick – the “rest of the world” meaning everyone but China.

There is, apparently, the “framework of a deal” between the world’s two largest economies, but talks between Washington and Beijing are continuing.

Read more US news:
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Worker begs America for help

In terms of wins, he can claim some significant deals and point to his tariffs having generated an impressive $27bn (£20.4bn) in June, not bad for a single month.

But the legality of the approach is under siege – with the US Court of International Trade ruling that the “Liberation Day” tariffs exceeded the president’s authority, with enforcement paused pending appeal.

The deadline has stirred the pot, forcing a handful of deals onto the table. Whether they stick or survive legal scrutiny is far from settled.

But the playbook remains the same – threaten the world with trade chaos, whittle it down, celebrate the wins, and pray no one checks what’s legal.

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Politics

Michael Saylor joins chorus for clarity as US works to legally define crypto

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Michael Saylor joins chorus for clarity as US works to legally define crypto

Michael Saylor joins chorus for clarity as US works to legally define crypto

Strategy’s Michael Saylor wants the US government to clearly define digital securities and commodities, as well as state when it is allowable to tokenize securities.

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Entertainment

Flintoff praises NHS staff who treated him after crash, as doctor says his injuries were ‘among most complex’ he’s ever seen

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Flintoff praises NHS staff who treated him after crash, as doctor says his injuries were 'among most complex' he's ever seen

Andrew Flintoff has praised the “love and compassion” of “superhero” staff in a visit to the hospital that treated him after his crash.

The cricket legend was seriously injured during the incident on the Top Gear track in Surrey in December 2022.

He was airlifted to St George’s in Tooting, with a surgeon calling Flintoff’s injuries some of the most complex he’s seen.

“I just want to say a massive thank you to all the staff at St George’s,” Flintoff said, as he returned to the London hospital.

“I came here probably the lowest I’ve ever been, in need of help and the expertise, the love, the compassion they showed me was incredible.

“I’ll be eternally grateful – absolute superheroes.”

Flintoff with St George's Consultant Oral and Maxillofacial Surgeon Jahrad Haq. Pic: PA
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Maxillofacial surgeon Jahrad Haq said Flintoff’s case was very complex. Pic: PA

Jahrad Haq, a maxillofacial surgeon, said he knew immediately the case was something out of the ordinary.

More on Andrew ‘freddie’ Flintoff

“I was on call that day and received a phone call from the emergency department consultant,” said Mr Haq.

“A lot of injuries are managed at a more junior level before escalating, so I knew this one was serious.

“Of all the trauma cases I’ve seen in over 20 years, this was among the most complex.”

Flintoff with nurses Linda Holden (left) and Sonia Steer. Pic: PA
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The ex-cricketer with nurses Linda Holden (left) and Sonia Steer. Pic: PA

Flintoff was also pictured on his visit meeting lead dental nurse Linda Holden and principal orthodontic nurse Sonia Steer.

Shamim Umarji, who also treated the 47-year-old, said it was “wonderful to see Freddie again and his visit gave staff a real boost”.

“He spent a lot of time chatting to everyone and it meant a lot,” added the trauma and orthopaedic surgeon.

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Flintoff previously described how he thought he had died in the accident – which saw him “pulled face-down on the runway” for about 50m under a three-wheel car.

The incident led to the BBC pulling the plug on Top Gear and it remains unclear if it will ever return.

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