Andy Nurman
January 1, 2024
Electric vehicle maker Tesla announced $7,500 federal tax credit to several models. Now the credit will apply at the point of sale to cash or loan purchases of the Model 3 Performance, Model Y Rear-Wheel Drive, Model Y Long Range, Model Y Performance, and Model X Dual Motor.
Model S, Model 3 RWD and Long Range are excluded.
The same income requirements remain in effect – $300,000 for married joint filers, $225,000 for heads of households, and $150,000 for other filers. Vehicle MSRP caps includes added software, accessories and fees are also still in place. Check with Tesla for details.
Previously, some Tesla models were excluded likely due to the automaker sourcing components from foreign companies that raise national security issues. But for now, all of the top-selling Model Y crossover SUV are eligible.
Our Thoughts
Making the expanded federal tax credit instant at purchase could further spur Tesla’s industry-leading growth. Especially for the globally popular Model Y, the affordability boost could accelerate already hot demand. As Tesla continues expanding manufacturing capacity, more American buyers can now gain access to that growth at lower prices upfront.
