Tesla has raised the price of its best-selling Model Y in the US by $1,000 after the government raised the price cap for electric crossovers eligible 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. Current and previous prices posted on the company’s website show a $1,000 price increase each.
This is the second price increase for the Model Y Long Range in the past two weeks.
These models remain 15% and 17% cheaper, respectively, than before Tesla lowered prices to stimulate demand last month, before considering the $7,500 tax credit that buyers are now eligible to receive. is.
Conversely, the Treasury Department ruled Friday that crossovers like the Model Y are eligible for the electric vehicle tax credit as long as they cost less than $80,000. Cars, sedans and wagons have a lower limit of $55,000.
It represents Tesla, General Motors, Ford and other automakers pressuring the Biden administration to loosen the definition of a vehicle in implementing incentive plans that cover a wider lineup. .
At previous prices, buyers of Tesla’s Model Y could only add about $1,000 for extra features such as a towing hitch before pushing the price above the level at which tax incentives apply.