Elon Musk Calls It “Bizarre” That the Tesla Model Y Five-Seater Is Not Eligible for the New EV Tax Credit

According to the IRS's list of qualified EVs, the five-seat Tesla Model Y may not be eligible for the new EV tax credit. It was questioned by Elon Musk, who called it "bizarre. The new EV tax credit is not applicable to the Tesla Model Y. The Internal Revenue Service (IRS) has made public the list of vehicles that qualify for the new EV tax credit, according to the most recent article by The Verge. The maximum reward for 2023 is $7,500. However, owners of the Tesla Model Y's five-seater version will not be able to take advantage of it. The Long Range five-seater version of the Model Y was not included, despite it being added to the list. This is why. According to reports, the five-seater Tesla crossover is not classified as a "non-passenger automobile" under government criteria. Additionally, the aforementioned Model Y failed to meet the IRS' primary SUV qualification. [caption id="" align="aligncenter" width="941"] Image credit - Benzinga[/caption] In fact, the IRS mandates that SUVs weigh at least 6,000 pounds. The five-seater Model Y can, nevertheless, meet the weight requirement. The EV only boasts a gross weight of 4,403 pounds, which is far less than the threshold required by the federal revenue service, according to the reports. Despite this, the five-seat Model Y is not even classified as an SUV by the IRS. Since the Long Range retails for about $66,000, the price ceiling for it to qualify is only $55,000, making it too pricey. According to the requirements of the new EV tax credit, it appears that the Model Y Long Range is overweight and pricey. As a result, purchasers of the five-seat crossover will forfeit the $7,500 incentive. Unless the manufacturer of electric only vehicles takes action.

Elon Musk Describes it as Odd

The Model Y Long Range is not eligible for the EV tax credit, and Tesla's CEO, Elon Musk, responded to this on his now-owned Twitter account. [caption id="" align="aligncenter" width="594"] Image credit- Tech Times[/caption] The multibillionaire businessman wonders if the manufacturer is being punished for making its SUV too efficient in terms of mass production. The IT executive thinks it's "bizarre." The Model 3 sedan Performance model, which costs more than the IRS's $55,000 price cap, prevents it from being eligible for the new tax incentives, according to a report by Inside EVs. It's important to note that the Model 3 Performance has a starting price of roughly $70,00.