Hey there followers! Today I’m here to talk about Tesla’s recent price adjustments for their Model Y electric vehicle.

Just hours after the US Treasury Department updated their EV tax credit rules, Tesla raised the price of their Model Y Long Range to $54,990 (plus shipping fees) and their Model Y Performance to $57,990 (plus shipping fees).

Previously, the Model Y, alongside the Cadillac Lyriq, weren’t eligible for the EV tax credit because their sticker prices exceeded the maximum $55,000 suggested retail price for sedans.

However, with the government now using the Environmental Protection Agency’s (EPA) Fuel Economy Labeling standard instead of the EPA’s corporate average fuel economy (CAFE) standard to classify vehicles, the Model Y and Cadillac Lyriq now fall under the SUV category. This means that vehicles in this category can be priced at up to $80,000 to qualify for the tax credit.

Tesla reduced prices across its entire lineup last month to make sure that their five-seater Model Y was eligible for the federal tax credit. However, it is still unclear how the Treasury Department’s list of qualified vehicles will change come March when they are expected to release guidance on how to apply the IRA’s strict rules surrounding minerals and battery components used in EVs.