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Tesla's Model Y prices rose after the US relaxed tax credit terms. View new rates here

 



Tesla raised the price of the Model Y Long Range to $54,990 and the Model Y Performance to $57,990, each an increase of $1,000.


Tesla Inc raised prices of its best-selling vehicle, the Model Y, by $1,000 after the government raised limits on the price of crossover electric vehicles eligible for tax credits.


Tesla raised the price of the Model Y Long Range to $54,990 and the Model Y Performance to $57,990, an increase of $1,000 each, according to current and past prices posted on its website.


This was the second increase in the prices of the Model Y Long Range in the last two weeks.


The models remain 15% and 17% cheaper than before Tesla slashed prices last month to dampen demand, before accounting for the $7,500 tax credit buyers now qualify to receive.


In a reversal, the Treasury Department ruled Friday that crossover electric vehicles like the Model Y would qualify for tax credits as long as they cost less than $80,000. The ceiling is less than $55,000 for cars, sedans, and wagons.


It represents a victory for Tesla, General Motors, Ford and other automakers, which had pressed the Biden administration to loosen vehicle definitions in the implementation of a stimulus plan to make more of their lineups eligible.


At its previous price, a Tesla buyer of a Model Y would be able to add about $1,000 in extra features, such as a tow hitch, before pushing the price above the level at which tax incentives would apply.


Tesla cut prices globally in January in response to signs of slowing demand. It cut prices for the second time in South Korea on Friday.

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