Tesla raises Model Y prices by $1,000 after U.S. relaxes tax credit terms

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Tesla raises Model Y prices by $1,000 after U.S. relaxes tax credit terms
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Tesla Inc raised prices in the United States of its best-selling vehicle, the Model Y, by $1,000 after the government raised the ceiling on the price of crossover electric vehicles eligible for tax credits.

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 inChief 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 saidReporting by Rishabh Jaiswal and Akanksha Khushi in Bengaluru; Additional reporting by Hyunjoo Jin; Editing by William Mallard

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