Just like in Canada Tesla has issued massive price cuts in the US on Thursday night, and in the process have made the Model 3 Rear-Wheel Drive (RWD) and more variants of the Model Y qualify for the $7,500 US tax credit.
If you have been following the debacle around Tesla and the US tax credit, you will know that the five seat variants of the Model Y didn’t qualify because the IRS classified it as a passenger car (with a $55,000 MSRP threshold) and not an SUV (with an $80,000 MSRP threshold) due to a number of factors, including its weight.
Instead of waiting for the federal government to potentially update their rules, Tesla has decided to take matters into their own hands and slashed the price to below the passenger car limit. The Model Y Long Range is now priced at $52,990, a massive 20% drop from its previous price of $65,990.
The Model Y Performance also saw a massive 18% price cut from $69,990 to $56,990.
UPDATE 9:20pm PT: The Giga Texas Model Y AWD with 4680 cells has also seen a massive 21% price drop from $61,990 to $50,990. These are still only available to purchase through existing inventory.
The Model 3 also saw price cuts which now makes both the RWD and Performance qualify for the tax credit. The RWD dropped 6% from $46,990 to $43,990, and the Performance dropped 14% from $62,990 to $53,990.
If you are still a little confused about the US tax credit, Tesla has now created a support page which goes into the details around which vehicles qualify and the IRS eligibility requirements.
Not to be left out, the Model S and Model X also experience large price reductions.
- Model S: $94,990 (-$10,000, -10%)
- Model S Plaid: $114,990 (-$21,000, -15%)
- Model X: $109,990 (-$11,000, -9%)
- Model X Plaid: $119,990 (-$19,000, -14%)
You can read our breakdown of the price changes in Canada here.