Why Tesla’s Model Y might not be eligible for the new EV tax credit

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Why Tesla’s Model Y might not be eligible for the new EV tax credit
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Only Model Y SUVs with third-row seating get $7,500 credits.

from the factory could fix that, or it would need active air suspension like the Model X.

As an SUV, the seven-seater Model Y jumps to the applicable MSRP limit of $85,000, which makes those versions eligible for the tax incentive. The seven-seat option adds $3,000 to the Model Y Long Range’s price but notably cannot currently be configured with Model Y Performance trims — making those ineligible as well.

There are other curiosities that fall on the IRS list of clean vehicles, like how the Ford Mustang Mach-E isn’t considered to be an SUV while the Ford Escape Plug-in hybrid is. The Escape has a shorter wheelbase and is lighter than the Mach-E, too. It would seem that Tesla and other manufacturers will have to make some changes to fall in line with the new clean vehicle qualifications. Tesla, specifically, might need to make some design changes to its Model Y. It might be hard to get it over 6,000 pounds, but it could just reduce the price of the car.

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