Tesla raises Model Y prices by $1,000

This is the second increase in price over the past two weeks

BENGALURU:

Tesla Inc raised prices in the United States of its best-selling vehicle, the Model Y, by $1,000 after the government raised the ceiling on the price of crossover electric vehicles (EVs) eligible for tax credits.

Tesla increased the price of the Model Y Long Range to $54,990, and the Model Y Performance to $57,990, an increase of $1,000 each, according to current and previous 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 like the Model Y would qualify for EV tax credits as long as they were priced below $80,000. The ceiling for cars, sedans and wagons is lower at $55,000.

Published in The Express Tribune, February 5^th, 2023.

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