First up, Barron's, February 3:
The Internal Revenue Service does seem to listen to comments when it proposes a rule.
The agency, which is responsible for implementing the new electric-vehicle purchase tax credits passed as part of the Inflation Reduction Act, has redone the eligibility price limits for several EVs. The changes benefit Tesla (ticker: TSLA), Ford Motor (F) as well as General Motors (GM).
The Tesla Model Y, which is the best-selling EV in America, now qualifies for the $7,500 credit if it is priced under $80,000. That essentially means the IRS is giving the Model Y the same tax benefit available to SUVs or trucks. Earlier, a Model Y had to be priced below $55,000. That’s the price cap for cars.
The Cadillac Lyriq and the Ford Mustang Mach-E were in the same boat as the Model Y. Other similar-sized vehicles such as the Audi Q5 were treated like SUVs in terms of eligibility from the start.....
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And from Yahoo Finance, February 6:
Tesla hikes Model Y prices after EV tax credit expansion
Tesla (TSLA) is taking the opportunity to ram through some price increases, thanks to Uncle Sam.
On Friday the IRS released new guidance changing the definition it used to classify vehicles as SUVs, using the formulation the EPA uses for EV tax credits. This then allowed many vehicles like some versions of the Tesla Model Y, Volkswagen ID.4, and Cadillac LYRIQ to use the higher $80,000 MSRP price cap for EV tax credit exclusion.
Like clockwork, Tesla raised the price of the Model Y long range, currently the cheapest Model Y available, by $1,500 to $54,990. The Model Y Performance model also rose $1,000 to $57,990.
Of course these new prices are still considerably lower than what the vehicles cost prior to the massive price cuts Tesla initiated back in early January, which the company used to gin up demand (and also address shortcomings in EV tax credit eligibility for the 5-passenger versions of the Model Y)....
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It's not quite an airline revenue management or Amazon continuous pricing model but Tesla pricing seems pretty dynamic.
