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

by Chris Teague

January 26th, 2023 11:47 AM

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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#Teslaprices #TeslaModelY #ElonMusk #EVTaxCredits

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9 of 10 comments

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.

1 Reply
- See 2 previous
- EBFlex on Jan 26, 2023
  
  So the way to sell government cars is to slash prices drastically. Got it.
  
  1
- VoGhost on Jan 26, 2023
  
  The whiners who whined when Tesla raised prices also whine when Tesla lowers prices.
  
  2
- EBFlex on Jan 27, 2023
  
  Not true at all VoGhost
  
  1
Analoggrotto on Jan 26, 2023

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

1 Reply
- See 3 previous
- ToolGuy on Jan 26, 2023
  
  "Smug" -- I don't know what that means. Can you provide an example? 😉
  
  Like
- EBFlex on Jan 26, 2023
  
  Worse than Prius drivers
  
  1
- Luke42 on Jan 26, 2023
  
  @EBFlex,
  I used to be a Prius driver, now I'm a Tesla driver.
  
  I do all of these things just to annoy you. /s, LOL!
  Seriously, I just want to live in the future - and driving an electric car is a smooth futuristic experience that's much cleaner / quieter / faster than the now-obsolete vehicles it replaced.
  
  1
- 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.
  
  1

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