Tesla has made a significant change in the United States by applying the $7,500 federal tax credit for electric vehicles (EVs) at the point of sale. This move represents a major shift in how consumers purchase EVs and how incentives are used to encourage the adoption of cleaner transportation technologies.
Previously, the $7,500 tax credit for EVs was claimed by consumers on their tax returns. This meant that buyers of electric vehicles, including those from Tesla, had to wait until they filed their taxes to benefit from the incentive, which could be many months after the purchase. Now it can be taken off the purchase price at delivery.
Tesla’s decision to apply the tax credit at the point of sale effectively reduces the price of its vehicles instantly, much like how Canada’s iZEV incentive is applied. This approach significantly lowers the barrier to entry for potential EV buyers, making Teslas more accessible and affordable.
BREAKING: Tesla is now officially offering the new $7,500 Fed EV point-of-sale (POS) rebate in the US, enabling an estimated 250 million Americans (up from ~75M in 2023).— Sawyer Merritt (@SawyerMerritt) January 12, 2024
To get a $7,500 discount directly off the purchase price of a Tesla, click yes (see below) during the… pic.twitter.com/3dXjamvqLw
Along with income limits, not all Tesla vehicles qualify for the tax credit. According to Tesla’s website the Model 3 Performance (which is no longer available, for now), Model X All-Wheel Drive, and all three variants of the Model Y are eligible for the $7,500 credit.
If eligible, both in terms of your income and the vehicle you pick, here are the new prices for each Tesla, with the tax credit applied.
- Model X All-Wheel Drive – $72,490
- Model Y Rear-Wheel Drive – $36,490
- Model Y Long Range – $41,490
- Model Y Performance – $44,990
The impact of this change is expected to be substantial. It not only makes EVs more appealing to a broader range of consumers but also aligns with the U.S. government’s goals of reducing carbon emissions and promoting sustainable transportation. By making EVs more financially accessible, Tesla is likely to see an increase in sales, further cementing its position as a leader in the EV market.