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

Chris Teague
by Chris Teague

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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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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  • 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.

  • CKNSLS Sierra SLT I am thankful for those who have served/and serve this country to protect our freedoms.The "usual suspects" are quiet.......
  • KevinB Hemmings ran an article on the 1960 Cadillac Series 62 grille and its complexity. It took a lot of work.https://www.hemmings.com/stories/article/1960-cadillac-series-62
  • Kwik_Shift_Pro4X Now going for $7000.
  • SCE to AUX Working on a deck project. Also replaced the A/C compressor in a Subaru.
  • A I have a project 87 or 88, don't have the year in front of me. Tranny was starting to slip when my daughter drove it, original tranny so it's likely the rubber seals are failing. I had a backup tranny so i disassembled it to see what kind of shape it was in. I did see it needs all the rubber seals, hard parts are all good. So a basic rebuild kit should fix it. The reason she stopped driving it was because she heard a slight engine knock. So both engine and tranny likely will need a rebuild. We are from Wisconsin but only rarely driven in snow, underside looks solid and a bit of surface rust here and there. Some fading from the sun.She has decided to let it go now that ahe is a mother and no air bags. This car is fun to drive but at my age i don't need another project. Will send pictures if anyone is interested, I will let it go at junk price, just would rather see it fixed and driven then crushed and melted down.Contact info thewoz69@gmail.com