Tesla Model Y Gets A Price Increase Of $500

The Tesla Model Y’s price went up, after huge price cuts.

A little over a week ago, Tesla made headlines when the brand dramatically slashed prices on the entire lineup, with the Model Y taking the brunt of the price cuts. Now, the Model Y has had a price increase, but only just by a little – $500.

Starting at now $53,490 for the cheapest example of a Model Y, the Tesla crossover still remains eligible for the IRS tax credit. For some reason, the IRS has classified the 5-passenger Model Y as a car, meaning it’s subject to the lower $55,000 price maximum in order to qualify for the up to $7,500 EV tax credit. The old price of more than $64,000 was way too high, but the new price sees the Tesla Model Y slip right into the correct place.

The severe price cuts have been a boon to the brand, with many reporting inventories of new models at local Tesla stores disappearing practically overnight. Price cuts have also significantly driven down used prices, maybe to the ire of some owners and dealerships.

Including the full weight of the tax credit, the Model Y essentially could be as little as $45,990 – making it really cheap. It’s so cheap, that it undercuts similarly-sized EVs that don’t qualify for the tax credit, like the Hyundai Ioniq 5, Kia EV6, or higher trimmed versions of the Ford Mustang Mach-E.

It’s unclear if the Tesla Model Y’s price cut will hold, or if it’ll march back up to where it was over the next few weeks. Tesla has notoriously has changed pricing much more often than a traditional automaker, so we will have to wait and see.

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