The price of Tesla Inc's best-selling vehicle, Model Y, was increased by $1,000 in the United States after the ceiling on the crossover electric vehicles' price which is eligible for tax credits was raised by the government.

The price of the Model Y Long Range was increased to $54,990 and the Model Y Performance was revised to $57,990, with a raise of $1,000 each by Tesla, as per the previous and current prices posted on the company's website.

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This was the second increase in the Model Y Long Range's price in the last two weeks.

The models are still 15% and 17% cheaper, respectively, compared to their earlier prices before they were slashed by Tesla last month to stoke demand and before the company had accounted for the $7,500 tax credit that buyers now can receive.

The Treasury Department, in a reversal, on Friday ruled that crossover cars like the Model Y will become eligible for electric vehicle tax credits as long as their prices are below $80,000.

The ceiling for wagons, cars and sedans is further lower at $55,000.

The decision turned into a win for General Motors, Ford, Tesla as well as other automakers which had appealed to the government to loosen the vehicle definitions in the incentive plan's implementation so that their more lineups are eligible.

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A buyer of Tesla Model Y, at its previous price, would have been able to only add around $1,000 in extra features, like a tow hitch, before the price is pushed above the level at which one can apply the tax incentive.

The prices were cut by Tesla globally in January responding to the signs of decreasing demand. The prices were deducted for the second time on Friday in South Korea.&nbsp;

(With inputs from agencies)

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The price of Tesla Inc's best-selling vehicle, Model Y, was increased by $1,000 in the United States after the ceiling on the crossover electric vehicles' price which is eligible for tax credits was raised by the government.

The price of Tesla Inc's best-selling vehicle, Model Y, was increased by $1,000 in the United States after the ceiling on the crossover electric vehicles' price which is eligible for tax credits was raised by the government. The price of the Model Y Long Range was increased to $54,990 and the Model Y Performance was revised to $57,990, with a raise of $1,000 each by Tesla, as per the previous and current prices posted on the company's website. ALSO READ | Elon Musk found not guilty in 2018 Tesla ‘funding secured’ tweet case This was the second increase in the Model Y Long Range's price in the last two weeks. The models are still 15% and 17% cheaper, respectively, compared to their earlier prices before they were slashed by Tesla last month to stoke demand and before the company had accounted for the $7,500 tax credit that buyers now can receive. The Treasury Department, in a reversal, on Friday ruled that crossover cars like the Model Y will become eligible for electric vehicle tax credits as long as their prices are below $80,000. The ceiling for wagons, cars and sedans is further lower at $55,000. The decision turned into a win for General Motors, Ford, Tesla as well as other automakers which had appealed to the government to loosen the vehicle definitions in the incentive plan's implementation so that their more lineups are eligible. WATCH | WION Fineprint | Tesla to recall around 1.1 million cars over window issue A buyer of Tesla Model Y, at its previous price, would have been able to only add around $1,000 in extra features, like a tow hitch, before the price is pushed above the level at which one can apply the tax incentive. The prices were cut by Tesla globally in January responding to the signs of decreasing demand. The prices were deducted for the second time on Friday in South Korea. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Tesla's Model Y price shoots by $1,000 after tax credit terms relaxed in US

Elon Musk danced at the launch of Tesla's Model Y electric sports utility vehicle program on January 7. In a tweet, he labelled the video "NSFW" - not safe for work.

Watch: Elon Musk's NSFW dance moves at launch of Tesla's Model Y

<a href="https://www.wionews.com/world/us-agency-probing-two-fatal-tesla-crashes-in-florida-since-sunday-200840">Tesla chief Elon Musk</a> on Thursday urged workers to make helping with the "biggest wave" of deliveries in the electric car maker's history their top priority, Business Insider reported.

The news website posted a copy of an internal email from Musk rallying Tesla troops to pitch in with "a massive wave of deliveries" throughout Europe, China and North America.

"This is the biggest wave in Tesla's history," the email read. "For the last ten days of the quarter, please consider your primary priority to be helping with vehicle deliveries. This applies to everyone."

The firm is experiencing the kind of tremendous increase in delivery demand seen in North America last year in Europe and China, according to the email, which added the situation was exacerbated by component supplier shortages in Europe.

Musk was reportedly seeking volunteers to drive Tesla cars to destinations such as shipping points, but said he did not expect the delivery crunch to recur in future quarters.

Tesla did not respond to a request for comment.

Meanwhile, a message from Tesla's official Twitter account on Tuesday said that due to trouble processing an unusually high volume of online orders, a planned slight increase in prices of some models was postponed a day.

Tesla currently makes all its cars at a plant in the Northern California city of Fremont and aimed to deliver 400,000 cars this year.

The firm recently introduced a new electric sports utility vehicle slightly bigger and more expensive than its Model 3, pitched as an electric car for the masses.

Tesla last week showed the all-electric Model Y with a starting price of $39,000 for a version with 370-kilometres range.&nbsp;

Deliveries were expected to begin late next year that model, with the standard-range version likely to get to buyers by spring 2021, according to the company.

Musk, 47, is a visionary and inventive boss but also highly unpredictable, especially on social network Twitter, where he has often communicated in defiance of rules imposed on executives of publicly-traded companies.

Tesla chief Elon Musk on Thursday urged workers to make helping with the "biggest wave" of deliveries in the electric car maker's history their top priority, Business Insider reported.

Tesla chief Elon Musk on Thursday urged workers to make helping with the "biggest wave" of deliveries in the electric car maker's history their top priority, Business Insider reported. The news website posted a copy of an internal email from Musk rallying Tesla troops to pitch in with "a massive wave of deliveries" throughout Europe, China and North America. "This is the biggest wave in Tesla's history," the email read. "For the last ten days of the quarter, please consider your primary priority to be helping with vehicle deliveries. This applies to everyone." The firm is experiencing the kind of tremendous increase in delivery demand seen in North America last year in Europe and China, according to the email, which added the situation was exacerbated by component supplier shortages in Europe. Musk was reportedly seeking volunteers to drive Tesla cars to destinations such as shipping points, but said he did not expect the delivery crunch to recur in future quarters. Tesla did not respond to a request for comment. Meanwhile, a message from Tesla's official Twitter account on Tuesday said that due to trouble processing an unusually high volume of online orders, a planned slight increase in prices of some models was postponed a day. Tesla currently makes all its cars at a plant in the Northern California city of Fremont and aimed to deliver 400,000 cars this year. The firm recently introduced a new electric sports utility vehicle slightly bigger and more expensive than its Model 3, pitched as an electric car for the masses. Tesla last week showed the all-electric Model Y with a starting price of $39,000 for a version with 370-kilometres range. Deliveries were expected to begin late next year that model, with the standard-range version likely to get to buyers by spring 2021, according to the company. Musk, 47, is a visionary and inventive boss but also highly unpredictable, especially on social network Twitter, where he has often communicated in defiance of rules imposed on executives of publicly-traded companies.

Tesla chief Elon Musk calls on workers to help deliver cars

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Tesla's Model Y price shoots by $1,000 after tax credit terms relaxed in US

Watch: Elon Musk's NSFW dance moves at launch of Tesla's Model Y

Tesla chief Elon Musk calls on workers to help deliver cars