Electric car giant Tesla had to go for a price update on some of its models. Expressing that the price increase was due to more than one reason, Tesla first reported that the Model Y would increase by around $ 1000.
Tesla Model Y price increased by $ 1000
Tesla has increased its Model Y prices due to increased demand and changes in tax crediting rules in the US. The Model Y Long Range version was up 2 percent to $54,990, while the Performance version was up 2.7 percent to $57,990.
Model Y, Tesla’s best-selling vehicle, saw a 20 percent discount about three weeks ago. The company’s price reduction application increased demand and caused Model Y to enter yen tax credits. The new law in the US credits many models, including Model Y, up to $7500.
Tesla’s revenue tends to grow consistently, both year-on-year and quarter-on-quarter. The company reported in January that it received the highest number of orders in its history. Therefore, it is possible to say that the price cuts made in January worked.
Tax credits in the US are part of the Inflation Reduction Act, designed to encourage sales of electric vehicles and reduce greenhouse gas emissions. The U.S. Treasury Department enforces a consumer fuel standard, making it easier for consumers to determine which vehicles are eligible for credit.
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