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 | <a href="https://www.wionews.com/technology/elon-musk-found-not-guilty-over-2018-tesla-funding-secured-tweet-558705">Elon Musk found not guilty in 2018 Tesla ‘funding secured’ tweet case</a>

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

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/wion-fineprint-tesla-to-recall-around-11-million-cars-over-window-issue-519131/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

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)

You can&nbsp;now write for wionews.com&nbsp;and be a part of the community. Share your stories and opinions with us&nbsp;<a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

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

tax-credit-terms

Tax Credit Terms, News on Tax Credit Terms, stories on Tax Credit Terms, articles on Tax Credit Terms, Tax Credit Terms stories at Wion, Tax Credit Terms news, Tax Credit Terms latest news

tax credit-terms

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