Tesla recently increased the prices of its Model Y SUV in the US, following the Biden administration’s change in measures to allow more crossover SUVs to be eligible for the electric vehicle tax credit. The Model Y Long Range’s cost went up by $1,500 to $54,990 and the Model Y Performance saw a $1,000 increase to $57,990.

The Treasury Department’s announcement broadened the definition of a sport-utility vehicle to expand the number of consumers who can take advantage of the $7,500 tax credit. Under the Inflation Reduction Act, SUVs costing up to $80,000 can now receive the credits.

Earlier this month, Tesla reduced the prices of its models to boost demand and become eligible for the credits. The company, based in Austin, Texas, sells its cars directly to consumers and frequently adjusts its prices.

More Information :- Autogos.com

CEO Elon Musk stated during the company’s quarterly earnings call that the price cuts resulted in a surge in demand and they “raised the Model Y price a little bit in response to that.