Tesla Cybertruck is now much cheaper as 'most American' pickup can be discounted with government tax credit

While the percentage of Tesla Cybertruck parts sourced from the US or Canada is less than that of, say, the most American pickup Honda Ridgeline, it is still eligible for the federal tax credit as its 4680 battery pack cells are both made and assembled in Texas.

Several months after it qualified for said tax credit in terms of a pricing range had to pass, however, before the IRS that administers the new EV tax credit anoints it with the $7,500 discount. Tesla lowered the Cybertruck pricing below the tax credit cap about four months ago when it started configuring non-Foundation Series units that automatically made the pickup $20,000 cheaper.

The dual-motor AWD trim in its inaugural Foundation Series edition was priced close to a hundred grand, just as the 2026 Model Y Launch Series edition now starts north of $60,000 with FSD and exclusive badging in a bundle offer.

The non-Foundation Series models, however, started from a $79,990 price that automatically slid the Cybertruck under the federal tax credit threshold of $80,000 for electric SUVs or pickups.

One full quarter had to pass, however, before the Cybertruck became eligible for the government's tax credit discount as a privately owned vehicle at the point of sale in the following quarter. The IRS had it included it in its list of vehicles that qualify since the beginning of the year, along with a cheaper RWD version that might launch this year, but Tesla was given the green light to apply the credit only on the first working day of February.

In any case, the Cybertruck's price is now much more palatable than at the time of launch when it started from $99,990. When the $1,000 referral credit and military discount are applied, and before any localized state incentives, the Cybertruck now starts just north of $70,000, putting it pretty close to the price of the average pickup sold in America, both electric and gas-powered. The Trump administration is preparing to do away with new EV subsidies, though, so there might just be a short window while the Cybertruck tax credit lasts as it is.

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