Tesla is starting 2023 as it ended 2022: with incentives aimed at propping up sales in China..
Tesla made in China Model 3.
The carmaker is offering Tesla Model 3 sedan and Tesla Model Y sport utility vehicle buyers as much as 10,000 yuan ($1,450) if they take delivery by Feb. 28, according to Tesla’s website.
With the a domestic EV competitor like BYD, Tesla China has to take Electric Car sales seriously and offer as much incentive as possible in order to continue to grow market share.
Tesla Model 3 and Y will be eligible for tax credits in 2023
As of January 1, 2023, Americans can claim a $7,500 tax credit when buying a Tesla Model 3 and Y. The Inflation Reduction Act allows eligible buyers the opportunity to claim a clean vehicle tax credit of up to $7,500 under Internal Revenue Code Section 30D.
These Tesla EV models qualify for the Inflation Reduction Act
Tesla Model 3 Rear Wheel Drive - MSRP: $55,000
Tesla Model 3 Long Range - MSRP: $55,000
Tesla Model Y All-Wheel Drive - 7 seat - MSRP: $80,000
Tesla Model Y Long Range - 7 seat - MSRP: $80,000
Tesla Model Y Performance - 7 seat - MSRP: $80,000
There has been a lot on controversy about the Tesla Model Y: all-wheel drive, long-range and performance 5-seat models not getting an MSRP limit of $80,000. To qualify for the tax rebate according to the IRS, the Tesla Model Y 5 seat model MSRP has to be below the $55,000 threshold.
It remains to be seen if Tesla will makes any changes to these models to get them under the $55,000 MSRP limit, which they need to do to qualify for the IRA tax credit.
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