Model 3

Tesla Adjusts Model 3 & Y Prices in US Based on Demand & IRA EV Credit

Tesla Adjusts Model 3 & Y Prices in US Based on Demand & IRA EV Credit

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Tesla has adjusted pricing for Model 3 and Model Y in the US. A minor adjustment was made to take into account demand and IRA EV credit, which recently revised its requirements for crossovers and SUVs.

At the end of last week, Tesla again adjusted the prices of some car models in the US. This time they touched only Model 3 and Model Y. On January 12, Tesla applied significant price cuts to its entire line of vehicles in North America, making some of them available to a wider range of consumers who previously could not afford to buy them. Particularly large price reduction affected Model Y, which caused a significant increase in demand. Already at the end of January, Tesla raised the price of the popular Model Y Long Range AWD by $500 to better match this.

Now, Tesla has once again adjusted prices, given the current situation, to balance the interests of consumers and the company. The entry-level Tesla Model 3 RWD becomes $500 cheaper, which will clearly please consumers who have been considering buying the car. Tesla Model Y got a little more expensive, with the Long Range AWD version now $1,500 more and the Performance version up $1,000.

This minor change comes after the government officially confirmed that all variants of Tesla Model Y are eligible for the $7,500 federal tax credit under the Inflation Reduction Act of 2022 (IRA). This also applies to other crossovers and SUVs that are priced under $80,000. Prior to the IRA amendments, some of them were not classified as SUVs and the cost threshold was capped at $55,000.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Article edited by @SmokeyShorts; follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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