Tesla's Model Y price shoots by $1,000 after tax credit terms relaxed in US
Tesla increases Model Y's price by $1,000 after US relaxes tax credit terms
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.
&im=FitAndFill=(700,400))
National Handloom Day 2026: From Alia Bhatt to Samantha Ruth Prabhu; Actresses who celebrated India's textile heritage as brides
)
The Royals enter the Doctor Who universe: King Charles and Queen Camilla beam into Commonwealth Games in TARDIS
)
Unitree Robotics targets $9 billion valuation in landmark IPO backed by DeepSeek and Tencent
)
India names 27 sites in Arunachal Pradesh
)
Bharat Bhhagya Viddhaata OTT: When will Kangana Ranaut's film stream online?
&im=FitAndFill=(700,400))
How many soldiers operate one S-400 battery?
)
Shakib Al Hasan ready to return to Bangladesh—under one condition
)
‘Fake news’: MEA rejects report claiming India sought defence pact with Israel after Pakistan, Saudi Arabia, Turkey deal
)
Rockstar to unveil GTA 6 extended look ahead of November launch
)
Russia forms Ukrainian Volunteer Spetsnaz Brigade to fight Ukraine
)
Drug-resistant fungus that hides in hair and enters bloodstream reported in 23 US states
)
Technology transfer deal boosts India's defence manufacturing ambitions
)
Border row erupts in Europe after Ceuta crossings, Spain imposes border controls on Italy
)
Morale plummets on USS Abraham Lincoln: Are US sailors reaching a breaking point? | GRAVITAS
)
'Security can't be bought with Pakistan, Turkey deal': Iran tells Saudi Arabia
)
Baba Vanga's 2026 prophecy: 2 predictions 'already came true', 3 terrifying ones remain. Details inside
)
Colombia’s new president Abelardo de la Espriella vows to ‘defeat narco-terrorists’, signals hardline shift
&im=FitAndFill=(700,400))
New Friday OTT releases (August 7, 2026): Operation Safed Sagar, Vadhandhi, Main Vaapis Aaunga- 6 movies and TV shows on Netflix, Prime Video and more
)
Squadron Leader Bhawana Kanth scripts history as Indian Air Force gets its first woman ‘Top Gun’ pilot
)
RSS says Gen Z protests reflect genuine distress
)
Trump says Iranian school bombing photos could be AI-generated - 'I don’t think...'
)
IAF officer held for sharing sensitive information in 'honey trap' case, booked under Official Secrets Act
)
Stray Kids under scrutiny? Fans react to Grammy submission silence after BTS boycott
&im=FitAndFill=(700,400))
Why the Su-30MKI doesn't need external fuel tanks to fly vast distances
)
Jugal Hansraj reunites with Shekhar Kapur after 40 years for Masoom: The Next Generation
)
New speed limits, automatic challans: Big traffic change coming to Delhi-Meerut Expressway. All you need to know
)
India officially names 27 places in Arunachal to counter China's renaming claims
)
Trump calls White House ballroom ruling a 'national disgrace' as court says Congress approval needed
)
US sanctions Iran’s crypto network after Strait of Hormuz attacks, offers $15m bounty for intel on IRGC finance
&im=FitAndFill=(700,400))
Why the Su-30MKI is one of the heaviest fighters ever built
)
Uttarakhand young innovator builds India's own flying vehicle, conducts first test flight: WATCH
)
Chilling video shows students take cover as teen opens fire at Thai school
)
Reese Witherspoon's father hospitalised after poolside incident in Nashville: Report
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 cannow write for wionews.comand be a part of the community. Share your stories and opinions with ushere.
WATCH WION LIVE HERE