March 21, 2023
The Model Y Long Range and Performance models price tag shot up $1,000, after a $500 hike last month on news from the Treasury Department.
Tesla prices are on the move again. The automaker raised the price of its best-selling Model Y this week. It’s the second bump up in price since Tesla CEO Elon Musk authorized deep cuts of up to 20% last month. The Model Y long-range price jumped $1,000 this week after a $500 hike last month to $54,990. The Model Y Performance rose to $57,990. The models remain 15% and 17% cheaper prior to the price cuts.
Musk tweeted last month that the "EV tax rules" were "messed up,” and he raised the issue with White House officials during a meeting last week. The five-seat version of the Tesla Model Y was not considered an SUV, while the Model Y seven-seat version was -- and could qualify for the credit.
The Treasury Department ruled Friday that crossovers such as Tesla’s Model Y would qualify for the EV tax credits as long as the vehicles are priced below $80,000. The decision also opens the door for GM's Cadillac Lyriq, Volkswagen's ID.4, the Ford Mustang Mach-E and Escape Plug-in Hybrid to qualify for the $7,500 tax credit. The ceiling for cars, sedans and wagons remains lower at $55,000.
Tax credit qualifiers remain the same for used electric vehicles. The tax credit for used EVs is calculated at either 30% of the vehicle's value or $4,000, whichever is less. The rules for used EVs went into effect last month.
