Model Y price is cheapest ever at $23,550 with new WA state rebate as Tesla adds Quicksilver color option

Tesla Model Y fans in the US have two reasons to celebrate about the world's bestselling vehicle.

First off, Tesla now offers inventory Model Y units in Quicksilver color, after launching this multi-coat hue together with the Midnight Cherry Red option in Europe. The new Model Y color is not free, though, and costs $2,000 more as an option.

What's more exciting, however, is a new instant state rebate that brings the price of a brand-new Model Y to the levels of the rumored Model 2 pricing.

Instead of launching a $25,000 car, Tesla can now brag that it is offering the cheapest Model Y in the nation below that price tag with Washington State's new, up to $9,000 instant EV rebate.

Stackable with the federal $7,500 tax credit and the state sales tax rebate of $2,557, these incentives bring the price of a $42,610 inventory Model Y down to an incredible $23,553 for a 3-year lease, or $4,000 more if purchased outright or leased for less than 3 years.

That's the level of the cheapest used Tesla Model 3 from the ongoing rental company fire sales. The caveat? Household income.

"Under the new program, Washington residents earning up to $45,180 annually for a single person or $93,600 for family of four, are eligible to receive up to $9,000 for a new EV lease of three years or more, or up to $5,000 for new EV purchases or two-year leases," says the Washington State Department of Commerce, with leases now starting from just $56/month:

1. Toyota bZ4X: $56/month
2. Hyundai Kona: $78/month
3. Nissan Leaf: $87/month
4. Hyundai Ioniq 6: $93/month
5. Subaru Solterra: $123/month
6. Tesla Model 3: $127/month
7. Kia Niro Wind: $135/month
8. Tesla Model Y: $207/month

"Used EVs are also eligible for a $2,500 rebate on both purchases and leases," it adds. The income threshold is quite a bit lower than that of the federal tax credit, which is $150,000 for single or married persons filing separately.

The generous $9,000 rebate is obviously targeted at the median household income in Washington State, which was $91,306 in 2022. Also, "program outreach will prioritize eligible residents living in communities that face worse health impacts from vehicle pollution, and workers who drive more than 19,000 miles a year for work," says the fine print.

Even without the new state rebates, however, the Model X and Model Y are now the cheapest they've ever been, after Tesla cut its EV prices across the board again.

It makes for a rather glaring price discrepancy with the base Model 3 Highland, though, which doesn't qualify for the federal tax credit on account of its Chinese batteries.

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