Tesla has quietly increased the price of its best-selling Model Y crossover. Starting Saturday, the it lists the Long Range and Performance models at $54,990 and $57,990, respectively. For the former, that represents an increase of $2,000 from the all-time low it hit when Tesla hit in mid-January. As for the Performance variant, it currently costs $1,000 more than after last month’s price adjustment.
As , the price increases come after the Biden administration last Friday linked the $7,500 federal tax credit to treat more vehicles as SUVs rather than sedans. Before the change, it was possible to get the full $7,500 incentive on the five-seat Model Y, but you had to configure the vehicle to fall below the $55,000 sedan threshold. Now all variants of the Model Y, including the Performance model, fall below the $80,000 SUV ceiling.
The automaker did not say whether it raised the price of the Model Y in response to Friday’s announcement. Following the January price cut, Tesla CFO Zach Kirkhorn said the move was partly an effort to ensure more of the company’s cars fell below the $55,000 threshold. With the Model Y now comfortably under the $80,000 limit, Tesla has more freedom to price the vehicle however it sees fit.
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