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

Tesla

(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.