Tesla Hikes Model Y Prices After IRS Grants EV SUVs $80,000 Tax Credit Cap

Model 3 is $500 less expensive but Model Y Long Range now costs $1,000 more


by Chris Chilton

February 6, 2023 at 15:26


 Tesla Tweaks Model 3 And Y Prices Again After IRS Grants EV SUVs $80,000 Tax Credit Cap 

by Chris Chilton



Keeping track of Tesla’s stock price is no small undertaking, but staying abreast of the firm’s ever changing car prices is almost as tough. Yes, Tesla has been fiddling with its price list again, reducing the cost of some cars and making others more expensive.

Much of the justification for the latest tweaks stemmed from the news that every Model Y would now qualify for EV tax credits because the Treasury decided crossovers would have the same $80,000 price cap as SUVs, and not the $55,000 cap given to regular cars.

That change to the details of the Inflation Reduction Act means that numerous popular new crossovers including the Cadillac Lyriq, Ford Mustang Mach-E and Volkswagen ID.4, which were denied SUV status by the IRS, but were priced above the $55,000 cap for cars, now qualify for credits.

Related: Used Tesla Values Dropped By Up To $4,600 In Two Weeks

 Tesla Tweaks Model 3 And Y Prices Again After IRS Grants EV SUVs $80,000 Tax Credit Cap 

Telsa Model S Land Range and Plaid prices remain the same

Tesla has pushed the price of the Model Y Long Range up by $1,000 to $54,990, which is still under the original $55k cap, but the Treasury’s decision means Tesla buyers can take a Model Y and throw in some options without worrying about blowing past the cap. This latest price rise comes less than a month after Tesla slashed $13,000 from the price of the same car, and only two weeks after it nudged the price back up by $500.

The speedy Model Y Performance was also hit with a price increase this month, and now costs $57,990, versus $56,990 this time last week. But the Treasury changes mean that qualifies for tax credits for the first time. And there’s more good news for potential Model 3 buyers: the entry level rear-wheel drive sedan drops $500 to $43,490.

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Prices for other Teslas are unchanged, so the Model S Long Range costs $94,990 and the Plaid comes in at $114,990, while a Model X Long Range will set you back $109,990 and a Performance version commands a $10k premium.

H/T Inside EVs