Tesla Model 3 and Model Y now ineligible for the Clean Vehicle Rebate Project subsidies in California

With the latest Tesla price hikes, the tag on a Model Y Long Range has now risen by US$10,000 in the span of just a year. Besides the Model Y Long Range, Tesla also raised the Model Y Performance and Model 3 Long Range by another grand just last week, with Elon Musk citing "inflationary pressures" by rising nickel prices and general supply chain malaise. One of the unintended consequences from the base Model 3 and Model Y price increases this month, however, is that they no longer qualify for the California Clean Vehicle Rebate Project (CVRP). Since the Tesla Model 3 MSRP now went above US$45,000, while the Model Y price is over the US$60,000 threshold, they breached through the respective caps for cars and SUVs, hence their buyers can no longer get the CVRP credit.

Tesla buyers in California who ordered on or before March 15, can still get US$2,000 from California's largest plug-in vehicle rebate program, though. Since the CVRP program looks at the order date, rather than delivery date, if they pressed the Model 3 or Model Y buy button after March 15, they aren't entitled to any rebates now. The California Clean Vehicle Rebate Project has been getting an increased volume of calls from Tesla buyers who wanted to know if they can still apply for the CVRP rebate and had to clarify the cutoff date for the general public, said its spokesman.

Tesla models have long ago lost the right for a US$7,500 EV tax credit, too, as they have sold way more than the 200,000 units threshold required to qualify. With the exorbitant jump in the price of gas in certain U.S. counties, Tesla saw its orders double there, though, so the loss of a US$2,000 CVRP rebate in California is unlikely to turn buyers away from ordering a Model Y or Model 3 anytime soon.

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