Tesla Model Y price now falls under Model 3 Highland right after purchase with immediate tax credit discount

Back in November, the Treasury Department announced that it has run the results of its research overview and found that "consumers overwhelmingly prefer an immediate rebate at point of sale." Its reaction to those findings was to create a way for dealers to register for advanced tax credit payments at the Internal Revenue Service's Energy Credits portal.

Starting January 1, 2024, "clean vehicle dealers and sellers" can reduce the price of the vehicles they are peddling immediately, and then submit their time-of-sale reports to obtain the amount of government tax credit back right away. For electric car buyers, this means that they can now reduce the price of eligible models right upon delivery, instead of waiting for their tax return.

Tesla models eligible for tax credit in 2024

• Model Y RWD
• Model Y AWD
• Model Y Performance
• Model X Long Range
• Model 3 Performance

It took a few days, but Tesla North America announced before the weekend that the "federal tax credit has now been updated," and eligible buyer can get $7500 off the purchase price of a new Model Y immediately at the time of delivery.

In addition, Tesla's performance Model X SUV is also eligible for the full tax credit amount, while the expensive Model S whose price is over the government's $55,000 limit for sedans, as well as the new Model 3 Highland trims that are made with Chinese batteries, aren't.

As a result, the price of a new Model Y RWD can immediately drop down to $36,490 now, a tag that is lower than the starting price of Tesla's cheapest Model 3 Highland option in the US that goes for $38,990 before Tesla's "gas savings."

The government nonetheless advises that Model Y buyers ask the dealer or seller for a copy of the IRS confirmation for a successful "time-of-sale" report that can be obtained through the Energy Credits portal.

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