Tesla now lets you choose your battery supplier for Model 3 and Model Y

Tesla now lets you choose your battery supplier for Model 3 and Model Y

Tesla model 3 and Tesla model Y

Tesla has begun providing different Model 3 and Model Y Long Range variants for its customers – dividing the two variants between those who are eligible for the $7,500 Federal EV Tax Credit, and those who are not eligible.

Eligible vs Non-Eligible Customers



Tesla is making two versions of their Long Range models of the Model 3 and Model Y available to customers in the U.S. One of them qualifies for the tax rebate, and the other doesn’t. However, there are some underlying differences between the two models customers should know.

Customers who claim they are eligible for the tax credit will be provided a VIN for a vehicle that qualifies for the EV Tax Credit. Vehicles that qualify for the Tax Credit have their battery and its cells manufactured in North America.

Customers who aren’t eligible or don’t opt to use the tax credit will get a VIN that doesn’t qualify for the federal credit. Customers who aren’t eligible for the federal rebate may still be eligible for local or state rebates, and these cars should be eligible for those specific rebates.

Panasonic vs LG Batteries

So what’s the difference between the two variants? It essentially comes down to the batteries and where they’re produced. The Model 3 and Model Y cars that are eligible for the tax credit will contain Panasonic batteries, which are produced in the U.S., while the cars not eligible for the rebate will include LG batteries.



They’re both non-LFP, 2170 cells, and while there isn’t a huge difference on the surface between the battery cells since they offer similar “regular” charging speeds and range, one does tend to be a little better. The LG batteries have been known to not charge as fast at level 3 chargers – which include Superchargers.

We recommend getting the vehicle that qualifies for the rebate that includes Panasonic batteries, even if you’re not planning to take advantage of the federal rebate. Besides getting a better battery, it leaves you open to receiving the tax rebate if circumstances change later in the year. It’s possible Tesla may offer a discount on the LG battery-powered model in the future, but at this time with them being the same cost, the Panasonic version makes more sense.

The Performance variant of the Model 3 and Model Y also comes with the Panasonic batteries. The LFP pack in the Rear-Wheel Drive variants of either vehicle also charge faster than the LG batteries.

The video below shows some of the speed differences between the battery packs.

How to View Cars



To view the vehicles with their specific battery packs, you’ll need to use Tesla’s inventory system. Simply go to the Inventory section of Tesla’s site, and then enable (Panasonic batteries) or disable (LG batteries) the Tax Credit Eligible Vehicles toggle on Tesla’s site.

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