The U.S. government has confirmed that Tesla’s Cybertruck qualifies for a $7,500 electric vehicle consumer tax credit. This tax credit applies to both the dual motor and single motor variants of the stainless steel truck.
Eligible Models and Pricing
With the tax credit, the effective starting price of the Cybertruck all-wheel variant will be $72,490 for eligible customers. The rear-wheel drive single-motor variant will start at $53,490 after the tax credit, once delivery begins. However, the Cyberbeast premium variant, priced at $99,990, is unlikely to qualify for the tax credit due to its price exceeding the $80,000 limit.
Other Eligible Tesla Models
In addition to the Cybertruck, all variants of the Model Y and Model 3, as well as the Model X all-wheel drive variant, are also eligible for the $7,500 electric vehicle consumer tax credits.
The Future of Electric Vehicle Tax Credits
The existence of electric vehicle consumer tax credits is currently uncertain. There are plans to kill the $7,500 consumer tax credit for electric vehicle purchases as part of broader tax-reform legislation. Tesla CEO Elon Musk has expressed support for ending government subsidies, including those for electric vehicles.
Impact on Tesla and the Industry
Musk believes that the elimination of subsidies would have a slight impact on Tesla but would be devastating for its competitors. However, not all experts agree. According to Gary Black, Managing Partner of The Future Fund, the killing of the consumer tax credit would have a negative impact on Tesla’s EPS, similar to the one experienced by the company when it resorted to price cuts to increase delivery volume in 2023.
Conclusion
The eligibility of the Cybertruck for the $7,500 tax credit is a significant development for Tesla and its customers. However, the future of electric vehicle tax credits remains uncertain, and the impact of their elimination on the industry is a topic of ongoing debate.