It’s the second time this year that the company has cut prices, with the Model X dropping $21,000 from $120,990 at the start of the year to just $99,990 currently. The Model S, meanwhile, has dropped from $104,990 to $89,990 since January 1 — a steep $15,000 reduction.
Neither car qualifies for federal tax credits that expire later this month, as they only apply to SUVs priced under $80,000 and cars under $55,000. Still, they’re likely to push many fence-sitters over the edge. That’s consistent with what CEO Elon Musk said at Tesla Investor’s Day that “the desire for people to own a Tesla is extremely high… (but) the limiting factor is their ability to pay for a Tesla.”
Most Model 3 and Y vehicles qualify for the rebates thanks to Tesla’s January price cuts on these electric vehicles. (As a reminder, it’s a “non-refundable” tax credit, so you’ll only benefit if you have a federal tax liability of at least $7,500.) After mid-March, however, the rules will change, and many EVs that in currently qualifies, may be excluded.
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