FYI: Tesla’s Cybertruck now joins the roster of vehicles eligible for a $7,500 EV tax credit, amid ongoing political debates about the program’s future.
Tesla has achieved a significant milestone by securing the EV tax credit for its highly anticipated Cybertruck, making the futuristic all-electric pickup more affordable. This move allows a broader range of customers to consider the Cybertruck as a viable option.
Initially, there was uncertainty about whether the Cybertruck would qualify for this incentive, especially with the Trump Administration’s inclination towards eliminating these credits. Despite the looming uncertainty, Tesla had anticipated this development in its Q4 2024 earnings report, expressing optimism about the Cybertruck meeting eligibility criteria.
The company’s announcement on Monday detailed the qualification of the Cybertruck for the $7,500 IRA EV tax credit, effectively reducing its starting price to $72,490. This incentive is now applicable to a total of nine Tesla models, including various iterations of the Model 3 and Model Y, along with the Model X.
Tesla Models Eligible for the IRA EV Tax Credit
- Tesla Cybertruck – Dual Motor
- Tesla Cybertruck – Single Motor
- Tesla Model 3 Long Range All-Wheel-Drive
- Tesla Model 3 Long Range Rear-Wheel-Drive
- Tesla Model 3 Performance
- Tesla Model X All-Wheel-Drive
- Tesla Model Y Long Range All-Wheel-Drive
- Tesla Model Y Long Range Rear-Wheel-Drive
- Tesla Model Y Performance
The future of the tax credit remains uncertain as the administration reviews its spending priorities. Some industry analysts, alongside Tesla CEO Elon Musk, suggest that the potential removal of the tax credit might give Tesla a competitive edge, given the brand’s established market presence and advanced technology. In contrast, other manufacturers could struggle without the financial incentive.
Dan Ives from Wedbush Securities noted that while the removal of the tax credit might dampen some demand, Tesla’s unmatched scale and innovation will help it maintain a strong position against traditional automakers.
For now, consumers can still leverage this credit while considering their purchases, but it’s unclear how long this advantage will last. Stay connected with market updates and automotive news to navigate these changes effectively.
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Written by William Kouch, Editor of Automotive.fyi
