Tesla raised prices in america of its best-selling vehicle, the Model Y, by $1,000 after the federal government raised the ceiling on the value of crossover electric vehicles eligible for tax credits.
Tesla increased the value of the Model Y Long Range to $54,990, and the Model Y Performance to $57,990, a rise of $1,000 each, in keeping with current and former prices posted on its website.
It was the second increase in price for the Model Y Long Range over the past two weeks.
The models remain 15% and 17% cheaper, respectively, than they were before Tesla slashed prices last month to stoke demand, before accounting for the $7,500 tax credit buyers now qualify to receive.
In a reversal, the Treasury Department ruled on Friday that crossovers just like the Model Y would qualify for electric vehicle tax credits so long as they were priced below $80,000. The ceiling for cars, sedans and wagons is lower at $55,000.
That represented a win for Tesla, General Motors, Ford and other automakers that had pressed the Biden administration to loosen the vehicle definitions within the implementation of the motivation plan to make more of their lineups eligible.
At its previous price, a Tesla buyer of a Model Y would only have been in a position to add about $1,000 in extra features, corresponding to a tow hitch, before pushing the value above the extent at which the tax incentive would apply.