Tesla Inc. TSLA customers can now avail $7,500 federal EV tax credit on Cybertruck purchases provided they are eligible for it.
What Happened: The 2025 all-wheel drive variant of the Cybertruck is eligible for the tax credit, Tesla announced in a post on social media platform X. If the purchase price of the vehicle does not exceed $80,000 and the customer meets the gross income limitations for availing the tax credit, they can take ownership of the truck for $72,490.
The all-wheel drive version of the Cybertruck starts at $79,990 without tax credit.
The more expensive Cyberbeast variant of the truck starts at $99,990 and exceeds the price bar to be eligible for the tax credit.
As per the U.S. government’s fueleconomy.gov website, the single-motor variant of the Cybertruck is also eligible for the tax credit but the company is yet to start the production of the variant. The rear-wheel drive single-motor variant will start at $53,490 after the tax credit once delivery starts.
Why It Matters: Currently, all variants of the Model Y and Model 3 in addition to the Model X all-wheel drive variant sold in the U.S. are also eligible for $7,500 electric vehicle consumer tax credits.
However, the very existence of the electric vehicle consumer tax credits is currently in question. In November, Reuters reported that President-elect Donald Trump's transition team is planning to kill the $7,500 consumer tax credit for electric vehicle purchases as part of broader tax-reform legislation. Tesla representatives reportedly supported the proposal to end the subsidy.
“In my view, we should end all government subsidies, including those for EVs, oil and gas,” Tesla CEO Elon Musk wrote on X following the report.
During Tesla's second-quarter earnings in late July, Musk alleged that the impact of the elimination of subsidies would only be slight for Tesla but devastating for its competitors. The elimination of EV subsidies would probably help Tesla in the long term, he added.
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Photo courtesy: Tesla
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