Tesla Model Y raises price by $1,000 after US relaxes tax credit terms
Tesla its US price increase best selling carthe Model Yraised $1,000 after the government raised the price ceiling of a crossover tram qualify for tax credits.
Tesla has increased the price of the Model Y Long Range to $54,990 and the Model Y Performance to $57,990, up $1,000 each, according to current and previous prices posted on its website.
This is the second price hike for the Model Y Long Range in the past two weeks.
The models are still 15% and 17% cheaper, respectively, than before Tesla slashed prices last month to stimulate demand, before counting the $7,500 tax credit that buyers are now eligible to receive.
In a reversal, The Treasury Department ruled on Friday that intersect like the Model Y would qualify for electric vehicle tax credits as long as they cost less than $80,000. The cap for cars, sedans and wagons is lower at $55,000.
That represents a win for Tesla, common engine, Ford and other automakers have pressed the Biden administration to loosen vehicle definitions in order to implement an incentive plan to make more of their product line eligible.
At the previous price, a Tesla Model Y buyer would only be able to add about $1,000 for extras, such as drag hitchhiking, before pushing the price above the tax incentive to be applied.