Tesla raises Model Y prices after expanding EV tax credits

Tesla (TSLA) is taking the opportunity, thanks to Uncle Sam, to raise prices.

On Friday, the IRS released new guidance changing the definition it used to classify vehicles as SUVs, using the language the EPA uses for electric vehicle tax credits. This then allowed many vehicles, such as some versions of the Tesla Model Y, Volkswagen ID.4, and Cadillac LYRIQ, to use the higher MSRP price cap of $80,000 to eliminate the electric vehicle tax credit.

Like clockwork, Tesla has raised the price of the long-range Model Y, which is currently the cheapest Model Y available, by $1,500 to $54,990. The Model Y Performance also went up $1,000 to $57,990.

Of course, these new prices are still significantly lower than the cost of vehicles prior to the massive price cut initiated by Tesla back in early January, which the company used to increase demand (as well as to address deficiencies in eligibility for the 5-seater EV tax credit). ). version of model Y).

Tesla Model Y prices as of February 6, 2023

Tesla Model Y prices as of February 6, 2023

Also in a somewhat unexpected move, Tesla cut the price of the Model 3 sedan, and the rear-wheel-drive version of the Model 3 dropped $500 to $43,490.

With higher price caps coming into play with new IRS rules and CEO Elon Musk saying demand exceeds supply last month during Tesla’s earnings call, it looks like Tesla has a lot more room to gradually increase prices. , so for now since the $7,500 tax credit is still in effect.

“[As] Tesla lifted the Model Y [prices] approximately $1,500 with a $55k cap that is no longer in place, and ultimately based on robust demand (doubling production levels) we may see some modest price increases in the coming months, giving Tesla more flexibility with the set tax break,” Dan Wedbush analyst. Ives said in a note today.

While some expect an EV price war, given Tesla’s earlier price cuts, that scenario didn’t materialize. Ford was the only manufacturer to significantly cut prices on its Mustang Mach-E SUV, which was a direct competitor to the Model Y. GM and Volkswagen refused to cut prices on their electric vehicles.

The bottom line for consumers looking at electric vehicles, and the Tesla Model Y in particular, will be to place an order now before prices rise again.

As for Tesla, the stock is up more than 3% in early trading today and a whopping 60% since the start of the year as demand history both here and around the world appears to be improving.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and beyond Instagram.

Click here to view the latest Yahoo Finance platform stock quotes.

Click here for the latest stock market news and in-depth analysis, including stock events.

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or android

Follow Yahoo Finance at Twitter, facebook, Instagram, flipboard, LinkedInAnd YouTube

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button