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New Tokyo incentives could cut Tesla prices nearly in half

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The Tokyo Metropolitan Government increased local EV subsidies up to ¥1.3 million (US$8,100) for BEVs, raising the maximum available incentive in the city. Tesla currently qualifies for a ¥300,000 (US$1,900) manufacturer subsidy, but under the new framework combined with national incentives, buyers could receive up to ¥2.6 million (US$16,000) total. This could reduce the effective price of a Model 3 RWD starting at ¥5.31 million and a Model Y RWD from ¥5.59 million by nearly half, boosting Tesla sales in Japan. Tesla registrations surged 182% year-over-year in May 2026, with nearly 2,000 vehic

🔎 Why it matters: The revised local incentive program in Tokyo directly impacts Tesla Model 3 and Model Y pricing with a combined maximum subsidy of ¥2.6 million.
📈 Upside: Reduces the effective purchase price of Tesla Model 3 and Model Y nearly by half in Tokyo.
📉 Risk: Not applicable.
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