After Huge Price Cuts, Tesla Raises The Price Of Its Most Popular Vehicle

At the beginning of the year, Tesla Inc TSLA had huge price cuts of its vehicles in the U.S., slashing prices up to 19.7%.

This allowed the Model 3 and Model Y to both qualify for the new $7,500 electric vehicle tax credit. 

But now it seems the new demand caused by the price cuts has allowed Tesla to raise prices by a small amount.

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The Model Y, Tesla's best-selling vehicle, has had a small price increase of $500.

While this allows the vehicle to still qualify for the $7,500 tax credit, it does limit the number of options buyers can add to the car.

Only a single option, either paint, interior color, or wheels, can be added onto the car and still allow it to receive the tax credit.

Luckily for Tesla, the software is not considered when factoring the purchase price for the tax credit, which means customers can still tack on the $15,000 Full Self-Driving (FSD) option if desired.

Of course, owners can also opt to subscribe to FSD for only $200 per month after taking delivery of their new electric car.

Photo courtesy of Tesla