Federal subsidies for EVs, like the tax credit, have a significant influence on the market. Tesla buyers couldn't get federal tax credits for a while because Tesla exceeded the 200,000 vehicle cap a few years back, triggering a phase-out. However, recent changes in legislation, particularly the Inflation Reduction Act of 2022, revamped EV incentives, removing the previous cap and introducing new criteria like North American assembly requirements and sourcing for battery materials. Tesla now qualifies again if specific criteria are met. These incentives impact both consumer choices and Tesla's pricing strategies, potentially making Teslas more affordable for some buyers. Keep an eye on potential legislative updates, as policies around EV incentives are evolving to encourage more sustainable tech adoption.