The Biggest Tesla Price Cuts Are Here! But There’s a Catch

From Andy Slye.

Tesla price drops for all vehicles due to new EV tax credit in 2023
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Great news for buyers, Tesla just slashed prices across all their vehicles (Model 3, Model Y, Model S, Model X). If you’re in the market for a Tesla, this is like Christmas day for you. Tesla’s website says: Until March 2023, certain new Model 3 and Model Y vehicles qualify for a $7,500 federal tax credit for eligible buyers. On January 1, 2023, the Inflation Reduction Act of 2022 qualified certain electric vehicles (EVs) for a tax credit of up to $7,500. Note: This credit amount applies to deliveries now and may change during March 2023, at which point credit amounts may be reduced.

Qualifications include:
Customers must buy it for their own use, not for resale
Use the vehicle primarily in the U.S.
Adjusted Gross Income (“AGI”) limitations
MSRP price caps

AGI Limitations:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers

Price Caps:
The vehicle price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees. The following models currently qualify for federal tax credits for eligible buyers who meet AGI limitations:
Model 3: $55,000
Model Y with 5 seats: $55,000
Model Y with 7 seats: $80,000
Price caps set by the federal government are subject to change.

The below starting prices are factoring in the destination fee which is now $1,390 along with the non-refundable order fee which which is $250.

Tesla Model S and Model X dual motor both decreased by ~$10,000
Tesla Model S and Model X Plaid models both decreased by ~$20,000
The rear wheel drive Model 3 now starts at ~$45,600 and if you’re eligible for the full $7,500 Tax Credit it comes down to $38,000
The Performance Model 3 starts at ~$55,600 and would be around $48,000 after the full Federal Tax Credit

Th Model Y Long Range Dual Motor is now ~$54,600 and if you are eligible for the full federal tax credit it’s down to $47,000. I think that’s the lowest it’s ever been.
The Performance Model Y is now ~$58,600 which isn’t eligible for the federal tax credit as a 5-seater.

The Long Range Model Y is probably the best deal I’ve seen in a very long time. Even if you are on a strict budget and you can’t spend more than $40,000 the RWD Model 3 is less than $40,000 after the full tax credit. Keep in mind that the price cap includes any optional equipment that’s physically attached to the vehicle at the time of delivery, but it excludes software features, accessories, taxes and fees. So if you upgrade your tires to the larger size or upgrade your paint color that does affect the price cap, but the good news is Tesla’s site shows you a real time message as you’re configuring and when you’re about to order it’ll tell you if your order is eligible for the full tax credit. I own a Tesla Model 3 and Model Y. They’re both incredible vehicles. You’re getting the safest car in its class. You’re getting performance. They’re sporty, they’re fast, they’re fun. They’re tech focused, the software the autopilot, the Supercharger network. This the best time to go electric.

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