Recent price increases make Tesla Model 3 and Model Y ineligible for California’s Clean Vehicle Rebate Project

Model3ModelY
Credit: Tesla

The Model 3 and Model Y are no longer eligible for purchase incentives in one of Tesla’s biggest markets, California.

Recent price increases have pushed the electric sedan and SUV out of the price brackets to receive the $2,000 incentive from California’s Clean Vehicle Rebate Project (CVRP).

According to a notice posted on the CVRP website, the Model 3 now exceeds the $45,000 limit for eligible cars, while the Model Y exceeds the $60,000 cap for SUV, trucks, and vans.

The notice explains that orders on or after March 16, 2022 are not eligible for a CVRP rebate. CarsDirect first reported the changes after confirming them with a representative from CVRP.

Canadians are all too familiar with this kind of story. Last year’s consistent price increases pushed the Model 3 Standard Range Plus, now called the Model 3 Rear-Wheel Drive, over the price limit for the $5,000 iZEV federal rebate.

That will hopefully change soon as the government is reportedly considering expanding the program to include more cars, SUVs, and trucks, with a possible announcement coming with the release of the 2022 Budget next month.

Canadian Government might retool the EV rebate program to include SUVs and pickups

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca