Did Tesla Increase Model Y Prices due to Biden's Tax Credit Boost?

By Autogos Team

Model Y Price Increase

Tesla recently increased the prices of its Model Y SUV in the US.

Reason for Price Increase

The price increase was due to the Biden administration's change in measures that allowed more crossover SUVs to be eligible for the electric vehicle tax credit.

Price Changes

– Model Y Long Range: $1,500 increase to $54,990 – Model Y Performance: $1,000 increase to $57,990

Tax Credit Expansion

The Treasury Department broadened the definition of a sport-utility vehicle to expand the number of consumers who can take advantage of the $7,500 tax credit.

Inflation Reduction Act

Under the Inflation Reduction Act, SUVs costing up to $80,000 can now receive the credits.

Previous Price Cut

Earlier this month, Tesla reduced the prices of its models to boost demand and become eligible for the credits.

Direct Sales

Tesla sells its cars directly to consumers and frequently adjusts its prices.

Response to Price Cut

According to CEO Elon Musk, the previous price cut resulted in a surge in demand and they "raised the Model Y price a little bit in response to that."