Electric vehicle manufacturer Tesla has raised prices on its Model Y in the U.S., apparently due to rising demand and changes in U.S. government rules that make more versions of the small SUV eligible for tax credits, according to a report from the Associated Press. The company bumped up the price of the Model Y Long Range version by about 2% to $54,990 and the Performance version by about 2.7% to $57,990, according to its website.
The moves come three weeks after Tesla cut prices nearly 20% on some versions of the Model Y, the company’s top-selling vehicle. The price cuts were made to boost sagging demand, and also to make more versions of the Model Y eligible for the $7,500 electric-vehicle tax credit that is part of the Inflation Reduction Act. The full tax credits will be available at least into March.
On Friday, the Treasury Department revised vehicle classification definitions to make more EVs — including SUVs made by Tesla, Ford, and General Motors — eligible for the full $7,500.
