Those considering purchase of the world's top-selling EV, the Tesla Model Y, will be happy to hear that the price of the electric SUV has it its all-time low, at least for buyers in the United States. The Model Y now starts at $43,990, is eligible for the full $7500 federal tax credit and can be had for even less if you opt for an in-stock inventory model.
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In early 2022, when the pandemic constricted supply chains and demand for electric vehicles was beginning to surge, the long range AWD (all-wheel-drive) Model Y peaked at $65,990. But then, as manufacturing bottlenecks eased and competition started to heat up, Tesla decreased the price of the long range Model Y over time, hitting its low price of $48,990 in 2023. As of January 2024, the long range AWD Model Y is still $48,990 but the lower range rear-wheel-drive Model Y is $5,000 less: $43,990.
Because the car and its batteries are manufactured in the United States, the Model Y currently qualifies for the full tax credit of $7,500 for U.S. buyers. As long as your gross household income is under $300,000 for married couples filing jointly, $225,000 for heads of households or $150,000 for all other filers, you can save an additional $7,500 off the purchase price of the car. And now in 2024, you don't have to wait until next year when you file your taxes to see the credit. It can be applied immediately at the time of purchase. With this incentive, the Model Y RWD -- at a net price of $37,490 after tax credit -- is actually less expensive than the smaller Model 3 sedan.
The Model Y is similar to its sporty little brother the Model 3 in many ways, but superior in others. The Model Y offers a higher ride height for better visiblity, more space for passengers and cargo, a true hatchback (vs. the Model 3's trunk) for easier loading, the option for a third row of seating, and the ability to tow a trailer or camper with an optional tow package. These advantages led to the Model Y recently overtaking the Model 3 as the cumulative best-selling EV in the world and the top selling car model of any kind in 2023.
Those who want to save even more can opt to purchase a Model Y from existing inventory - a car that is currently in stock at a Tesla store. Inventory cars still count as new as far as warranty, rebates and tax credits are concerned. Inventory discounts are sometimes up to $5,000 below the price of a custom order. And with local and state discounts and incentives, the price in your state may be even lower still.
Do pay attention when you order your Model Y. Because of the changes in 2024 related to battery sourcing, some existing inventory Model Ys (specifically the rear-wheel drive base Model Y manufactured in 2023) do not qualify for the tax credit in 2024. Any Model Y RWD manufactured in 2024 does qualify for the tax credit so make sure the "eligible for tax credit" message appears on screen or double-check with a local Tesla rep before finalizing your order. Long Range AWD and Performance Model Y cars manufactured in 2023 or 2024 are eligible for the full $7500 tax credit.
If you use a referral code for the purchase, you can get an additional bonus. As of January 15, 2024, that referral bonus is three free months of the company's "Full Self-Driving" software, which normally costs $199/month. FSD can also be purchased outright for $12,000. As someone who uses FSD regularly (including on a recent 6,000-mile road trip in my Tesla), I highly recommend checking it out. And with the 3-month free trial, you get to try before you buy.
If you need a referral code or referral link and you have a friend or family member who owns a Tesla, ask them for their code. If not, feel free to use mine (Tesla referral code: Christopher55570). It is also embedded in the below links so you'll get the bonus if you order using these links:
If you're not ready to commit without a test drive, you can also Schedule a Demo Drive at a location near you.
So is now the time to go electric with a Tesla Model Y? At these prices, it may very well be.
Related Reading:
Tesla Referral Program: How Does It Work and What Can I Get? (CleanTechnica)
Tesla Referral Code: Latest Offers
