Tesla (TSLA) shares are trading higher today as the IRS updated its criteria for what qualifies as an SUV, and this means more EV tax credits are available.
According to new rules, the IRS will use the EPA’s guidelines for which vehicles qualify as an SUV or crossover, meaning all models of the Tesla Model Y qualify for the higher $80,000 price cap for the EV tax credit. The tax credits, which are funded via the IRA (Inflation Reduction Act), previously used IRS guidance that only classified the 7-passenger variants of the Model Y as an SUV.
“To make it easier for consumers to know which vehicles qualify under the applicable MSRP cap, Treasury is updating the vehicle classification standard to use the consumer-facing EPA Fuel Economy Labeling standard, rather than the EPA CAFE standard. This change will allow crossover vehicles that share similar features to be treated consistently,” Treasury said in a statement.
The new guidance also allows all variants of the Ford Mustang…
2023-02-03 12:19:33 Tesla stock rips higher as IRS boosts Model Y EV tax credit eligibility
Original from finance.yahoo.com On Tuesday, March 30th, shares of Tesla, Inc. – the electric automobile manufacturer – skyrocketed as the Internal Revenue Service (IRS) announced that the Model Y electric vehicle would be eligible for the federal electric vehicle (EV) tax credit.
The change had been anticipated by investors, but news from the IRS that Model Y was eligible for the full $7,500 credit, sent shares up as much as 8%. The news represented an unexpected boon for Tesla and its generous tax credits.
At the start of March, Tesla was eligible for a full $7,500 credit on their Model 3 electric vehicle, but their Model S and X were only eligible for a reduced amount of $3,750. This substantial difference in available credits had caused many potential buyers to wait for the Model Y, as they were unaware if they would be eligible for the full amount.
The updated tax policy finally provided clarity and certainty to potential buyers and investors regarding the credits available on the Model Y, sending shares up by 8% on Tuesday. This boost helped Tesla reach its highest trading level in almost two months and further underscored the bullishness that has surrounded the stock since the turn-of-the-year.
The news of the policy shift sent a ripple of excitement throughout the electric vehicle industry and shows similar signs of positivity for electric vehicles in the future. It serves as a reminder that the electric vehicle industry is not slowing down, but rather accelerating at full speed to match the demand for its clean energy solutions.
Tesla’s stock has been on an upswing for the past few months, boosted by the inclusion of the Model Y, the entry-level $35,000 Model 3, and its customer-oriented Autopilot feature. With the added boost of the full electric vehicle tax credit eligibility, the stock is only expected to keep rising and electric vehicle demand is sure to increase.
It’s an exciting time for the electric vehicle industry and Tesla, Inc. as the industry shows continued optimism and increased demand for electric vehicles. It is expected that these positive signals will only continue as the industry continues to drive forward towards a cleaner, more electric future.