Tesla bumps up Model Y price after EV tax credit adjustment

On Friday, the Treasury Division up to date the best way it classifies autos that qualify for its $7,500 EV tax credit score as a part of the Inflation Discount Act (IRA). The change ought to permit extra autos — together with the Mannequin Y — to qualify for the credit score, because it now not places sure SUV crossovers in the identical class as sedans.

Beforehand, some fashions of the Mannequin Y, alongside the Cadillac Lyriq, weren’t eligible for the EV tax credit score as a result of their sticker costs exceeded the utmost $55,000 advised retail worth for sedans.

However now that the federal government makes use of the Environmental Safety Company’s (EPA) Gas Financial system Labeling commonplace as an alternative of the EPA’s company common gasoline financial system (CAFE) commonplace to categorise autos, the Mannequin Y and Cadillac Lyriq now fall beneath the SUV class. This provides Tesla extra wiggle room in the case of pricing, as autos on this class may be priced at as much as $80,000 to qualify for the tax credit score.

It’s nonetheless unclear how the Treasury Division’s listing of certified autos will change come March, although. That’s when the company’s anticipated to launch its steering on easy methods to apply the IRA’s strict guidelines surrounding the sourcing and manufacturing of the minerals and battery elements utilized in EVs.