As sales of electric vehicles continue to surge, many new and prospective customers have questions about qualifying for federal

Changes to Tesla's battery supply chain has brought the electric automaker's Model 3 within the guidelines qualifying it for federal tax credits.

A dealer can apply the tax credit to any leased electric vehicle, no matter where it's made, to reduce a customer's monthly payment.

The $7,500 tax credit, coupled with other US tax breaks, could lower the price of Model 3 Tesla to as low as $25,240.

The complete Tesla Model 3 and Y lineup now qualifies for a full $ 7,500 federal tax credit for clean cars. On Tuesday, the U.S. EPA officially added all Tesla Model 3 and Model Y variants to its list of tax-credit eligible vehicles.

All Tesla Model 3 sedans qualify for the federal tax credit, a change that has recently appeared on a government site tracking which EVs qualify for the incentives.

Tesla shares are surging today, up as much as 4% in early trade and hitting highs not seen since early October of last year, as investor bullishness grows following news that all Model 3 sedans now qualify for the full federal electric vehicle tax credits.