Tesla bumps up Mannequin Y value after EV tax credit score adjustment

On Friday, the Treasury Division up to date the way in which it classifies automobiles that qualify for its $7,500 EV tax credit score as a part of the Inflation Discount Act (IRA). The change ought to permit extra automobiles — together with the Mannequin Y — to qualify for the credit score, because it not places sure SUV crossovers in the identical class as sedans.

Beforehand, some fashions of the Mannequin Y, alongside the Cadillac Lyriq, weren’t eligible for the EV tax credit score as a result of their sticker costs exceeded the utmost $55,000 urged retail value for sedans.

However now that the federal government makes use of the Environmental Safety Company’s (EPA) Gasoline Financial system Labeling commonplace as an alternative of the EPA’s company common gas financial system (CAFE) commonplace to categorise automobiles, the Mannequin Y and Cadillac Lyriq now fall underneath the SUV class. This offers Tesla extra wiggle room relating to pricing, as automobiles on this class might be priced at as much as $80,000 to qualify for the tax credit score.

It’s nonetheless unclear how the Treasury Division’s checklist of certified automobiles will change come March, although. That’s when the company’s anticipated to launch its steering on easy methods to apply the IRA’s strict guidelines surrounding the sourcing and manufacturing of the minerals and battery elements utilized in EVs.