Tesla Model Y Price Jumps $1000 Overnight – Here’s Why
After the government increased the maximum cost of crossovers that are qualified for tax credits, Tesla hiked the cost of its most popular automobile, the 2023 Tesla Model Y, by an additional $1,000 within the US.
Tesla has raised the cost of their Model Y Long Range by $1000 to $54,990, and the price of the Model Y Performance by the same amount to $57,990, as shown on the company's website. This is the second time in two weeks that the Model Y Long Range has had its price increased.
Even after taking into account the $7,500 tax credit that purchasers are eligible for, the models still cost 15% and 17% less than they did prior to Tesla reducing their prices last month in order to increase sales.
On Friday, the Treasury Department changed its stance and determined that cars like the Tesla Model Y would be eligible for electric vehicle tax credits as long as their cost does not exceed $80,000. The maximum price for cars, sedans and wagons is $55,000.
This decision was a victory for automakers like Tesla, General Motors, Ford and others who had asked the Biden administration to make modifications to the vehicle definitions in the incentive plan to make their entire lineups qualify.
Prior to the change, someone who wanted to purchase a 2023 Tesla Model Y would only be able to add around $1,000 in additional features, such as a tow hitch, before the cost of the car surpassed the limit necessary for the tax credit to apply.
