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Tesla increased the price of the Model Y Long Range to $54,990,
and the Model Y Performance to $57,990, an increase of $1,000
each, according to current and previous prices posted on its
website.
It was the second increase in price for the Model Y Long Range
over the past two weeks.
The models remain 15% and 17% cheaper, respectively, than they
were before Tesla slashed prices last month to stoke demand,
before accounting for the $7,500 tax credit buyers now qualify
to receive.
In a reversal, the Treasury Department ruled on Friday that
crossovers like the Model Y would qualify for electric vehicle
tax credits as long as they were priced below $80,000. The
ceiling for cars, sedans and wagons is lower at $55,000.
That represented a win for Tesla, General Motors, Ford and other
automakers that had pressed the Biden administration to loosen
the vehicle definitions in the implementation of the incentive
plan to make more of their lineups eligible.
At its previous price, a Tesla buyer of a Model Y would only
have been able to add about $1,000 in extra features, such as a
tow hitch, before pushing the price above the level at which the
tax incentive would apply.
Tesla cut prices globally in January in response to signs of
slowing demand. It cut prices for a second time in South Korea
on Friday.
Chief Executive Elon Musk said last month that vehicle orders
were roughly double the company’s output in January after the
first round of price cuts. He said strong demand had prompted
the company to make its first small price increase to the Model
Y.
(Reporting by Rishabh Jaiswal and Akanksha Khushi in Bengaluru;
Additional reporting by Hyunjoo Jin; Editing by William Mallard)
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