To qualify for $7,500 tax credit, Tesla slashes prices significantly in the US

On Thursday night, Tesla's aggressive sales strategy has been implemented in the United States. According to the latest update on Tesla's official website, Tesla has made significant price cuts to the Model 3 and Model Y in the U.S. as a way to be able to qualify more variants of the Model 3 and Model Y for a $7,500 U.S. tax credit.

The Model Y long-range price has fallen the most, now down $13,000 from the previous price of $65,990 and a whopping 20 percent from the previous price of $65,990. The price of the Model Y Performance has also been reduced by a whopping 18 percent, from $69,990 to $56,990.

For the Tesla Model 3, the car's base RWD variant now retails for $43,990, down $3,000 from the previous $46,990. On the other hand, the top-of-the-line Model 3 Performance is now priced at $53,990, $9,000 less than its previous price of $62,990.

Old price
New price
Model 3
Model 3 Performance
$9000 (-14%)
Model Y
Model Y Performance
$13000 (-19%)
Model S
$10000 (-10%)
Model S Plaid
$21000 (-15%)
Model X
$11000 (-9%)
Model X Plaid

If you've followed the debate over Tesla and the U.S. tax credit recently, you'll know that because of other factors such as weight. the Model Y's five-seat model doesn't qualify because the IRS classifies it as a passenger car, not an SUV. this means the base five-seat Model Y now qualifies for the $7,500 electric vehicle tax credit under the Inflation Reduction Act.

The big price cuts seem to cover all models, including the Model S and Model X. The biggest price cut is $21,000 for the "Plaid" Model S, which you can see in the table above. However, there is one significant price increase, the Model Y's 7-seat option is now $4000 instead of the $3000 it used to be.

About Author
John Murphy

John Murphy is the founder of TOPCARS Tesla Aftermarket Accessories, as well as an investor in Tesla and owner of the Model Y. He posts about Tesla news while running the site on a daily basis.

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