Tesla has raised the price of its Model Y in the US, apparently due to growing demand. And changes to US government rules that make more versions of the small SUV eligible for tax credits.
DETROIT (AP) – Tesla has raised the price of its Model Y in the United States, apparently due to growing demand. And changes in U.S. government rules that make more versions of the small SUV eligible for tax credits.
The Austin, Texas, electric vehicle company raised the price of the Model Y Long Range Edition. By about 2% to $54,990 and the Performance Edition by about 2.7% to $57,990. According to its website. Prices exclude shipping and an order fee. The move Friday comes three weeks after Tesla slashed prices by nearly 20%. On some versions of the company’s best-selling Model Y car. The price cut was made to boost demand. And to make more versions of the Model Y eligible for a $7,500. Electric-vehicle tax credit in the Inflationary Reduction Act. The full tax credit will be available at least until March.
On Friday, the Treasury Department revised. The definition of vehicle classification so that more EVs. Including SUVs made by Tesla, Ford and General Motors — are eligible for the full $7,500.
The change came after lobbying by automakers who pushed the Biden administration. To change the definition of vehicle. To allow higher-priced vehicles to qualify for the largest credit. Tesla CEO Elon Musk met with top aides to President Joe Biden. Last week to discuss the EV industry and broader goals for electrification. Under sweeping legislation approved last summer, pickup trucks. SUVs and vans with sticker prices up to $80,000 are eligible for EVs. tax credit, while new electric cars, sedans and wagons can only cost up to $55,000. The rule disqualified some high-priced SUVs. Such as GM’s Cadillac Lyric and some versions. Of the Model Y. prompting complaints from Tesla and other automakers.
The January price cut apparently worked. On Tesla’s earnings conference call last week, CEO Elon Musk said. That January so far saw the company’s strongest year-to-date. Number of orders in the company’s history. He also said the company raised the price of the Model Y “a bit in response.”
After Tesla’s price cut, Ford responded by lowering. The price of its Mustang Mach-E. In part to qualify for tax credits and boost buyer interest. But Crosstown rival General Motors has said it has no plans to lower the price of its EVs.
But a complex web of requirements, requiring vehicles. And batteries to be manufactured to qualify. Cast doubt on whether buyers could receive the full $7,500 credit.
The Treasury Department said Friday it hopes to make. It easier for consumers to know which vehicles qualify for the credit. Under the revised rules, vehicle classifications will be determined by a consumer-oriented. Fuel economy label standard, rather than a more complex formula. Set by the Environmental Protection Agency, Treasury said.