Tesla Quietly Bumps Model Y Prices by $500 After Slashing Thousands Off the MSRP Earlier This Year

Chris Teague
by Chris Teague

tesla quietly bumps model y prices by 500 after slashing thousands off the msrp

Tesla made waves when it slashed prices earlier this month, but it appears the fluctuations aren’t finished. The automaker cut Model Y prices by $13,000 earlier in January but recently re-raised the price by $500.

Automotive News noticed the change. The entry-level Model Y Long Range now starts at $53,490, and buyers need to shell out an additional $1,390 for destination and $250 for an order fee. That’s not cheap, but it doesn’t run afoul of MSRP limitations in the Inflation Reduction Act, so it’s still eligible for a $7,500 tax credit – at least for now. 

Changes in tax credit rules placed different limitations on the prices of cars and other vehicles, with passenger cars having a lower price cap. Interestingly, the two-row Model Y was classified as a car, limiting its top-end price to $55,000. The three-row Model Y was classified as an SUV, raising its price limit to $80,000. In addition to price limits, upcoming rules place requirements on where minerals and other raw materials can be sourced.

The Treasury Department delayed its guidance on raw materials sourcing requirements until March, making many vehicles eligible for the credit that would not qualify after that time. At the same time, Senator Joe Manchin is toying with an amendment to the IRA that would retroactively apply materials sourcing requirements and disqualify vehicles sold so far this year. If that passed, people who already bought a car might have to give up the tax credit, but the situation seems to be changing almost daily, so we’ll have to wait a few more weeks to see where things land. 

[Image: Tesla]

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9 of 10 comments
  • SCE to AUX SCE to AUX on Jan 26, 2023

    It wasn't that quiet; it's all over the internet.

    Their volumes will go through the roof this year; they're already planning a major expansion of Giga 1.

    • See 2 previous
    • EBFlex EBFlex on Jan 27, 2023

      Not true at all VoGhost

  • Analoggrotto Analoggrotto on Jan 26, 2023

    Tesla drivers are the most fashionable and smug on the road these days.

    • See 3 previous
    • EBFlex EBFlex on Jan 27, 2023

      Luke I don’t care what you drive.

      I drive ICE because they are vastly superior and cheaper. The future is still ICE and has always been ICE.

  • Kwik_Shift I like, because I don't have to look at them. Just by feel and location while driving.
  • Dwford This is the last time we are making these, so you better hurry up and buy (until the next time we make them, that is)
  • FreedMike @Tim: "...about 40 percent of us Yanks don't live in a single-family home."Keep in mind that this only describes single family **detached** homes. But plenty of other house types offer a garage you can use to charge up in - attached single family homes (townhouses, primarily), or duplex/triplex/four-plexes. Plus, lots of condos have garages built in. Add those types of housing in and that 40% figure drops by a lot. Regardless, this points out what I've been thinking for a while now - EV ownership is great if you have a garage, and inconvenient (and more expensive) if you don't. The good news if you're looking for more EV sales is that there are literally hundreds of millions of Americans who have garages. If I had one, I'd be looking very closely at buying electric next time around.
  • Matthew N Fanetti I bought a Silver1985 Corolla GTS Hatchback used in 1989 with 80k miles for $5000. I was kin struggling student and I had no idea how good the car really was. All I knew was on the test drive I got to 80 faster than I expected from a Corolla. Slowly I figured out how special it was. It handled like nothing I had driven before, tearing up backroads at speeds that were downright crazy. On the highway I had it to about 128mph on two occasions, though it took some time to get there, it just kept going until I chickened out. I was an irresponsible kids doing donuts in parking lots and coming of corners sideways. I really drove it hard, but it never needed engine repair even to the day I sold it in 1999 with 225000 miles on it, still running well - but rusty and things were beginning to crap out (Like AC, etc.). I smoked a same year Mustang GT - off the line - by revving up and dumping the clutch. Started to go sideways, but nothing broke or even needed attention. Daily driving, only needed the clutch into first. It was that smooth and well-synced. Super tight, but drivable LSD. Just awesome from daily chores to super-fun.To this day I wish I had kept it, because now I have the money to fix it. It is hard to explain how amazing this car was back in the day - and available to people with limited money - and still the highest quality.
  • Cprescott Well, duh. You will pay more to charge a golf cart than an ICE of the same size if you charge externally. Plus when you factor in the lost time, you will pay through the nose more than an ICE on lost opportunity costs. Golf car ownership savings is pure myth.