The Tesla Model Y has been increased in price as a result of the recent adjustment to the ceiling on crossover electric vehicles (EVs) eligible for tax credits. A $1,000 increase was made to the price of the Model Y Long Range, as well as the Model Y Performance, at $54,990 and $57,990 respectively.
The Model Y Long Range has been subject to a price increase for the second time in the past fortnight. However, despite the price hike, the models remain cheaper by 15% and 17%, respectively, when compared to before the price cuts were implemented last month. Furthermore, these price reductions do not take into account the $7,500 tax credit that buyers are now eligible to receive.
According to the Treasury Department, crossovers such as the Model Y will be eligible for the EV tax credits if they are priced below $80,000. In contrast, the ceiling for cars, sedans, and wagons remains at $55,000.
As a result, Tesla’s latest pricing changes on the Model Y reflect changes to the tax credit ceiling, which have affected the price of the much-advertised crossover.