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Tesla Model Y’s complete lineup now qualifies for EV tax credits through Inflation Reduction Act

Credit: Tesla

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Tesla’s complete lineup of Model Y trim levels now qualifies for electric vehicle tax credits through the Inflation Reduction Act, as the Internal Revenue Service (IRS) has increased the applicable MSRP limit to $80,000 across each of the all-electric crossover’s configurations.

In December, the IRS released a list of vehicles that would qualify for the EV tax credit, effectively taking off $7,500 from the purchase price in the form of a tax break.

While the tax credit was revised and allowed automakers who had not been eligible for the tax credits due to previously-enforced sales caps of 200,000 units, it still had its flaws.

Vehicles like the five-seat configurations of the Model Y were 238 pounds too light to be considered SUVs and, thus, did not qualify for the tax break because it fell into the category of “All Other” vehicles. Qualifying SUVs had an $80,000 MSRP limit, while “All Other” vehicles had a $55,000 limit.

This sent Tesla fans and its CEO Elon Musk into a spell of confusion, as the tax credit, which was used to incentivize the purchase of sustainable powertrains, still included various gas-powered hybrid models.

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According to a report from Bloomberg, the U.S. Treasury Department said it would broaden the definition of an SUV. This would cause the government to revise its MSRP limits on certain Model Y vehicles that previously did not qualify for the credit.

“The change will allow crossover vehicles that share similar features to be treated consistently,” a report from the publication said.

The IRS has already updated the qualifying vehicles list on its website, with Tesla having each of its Model Y configurations now qualifying for the credit, as they are now considered SUVs in the government’s eyes.

tesla tax credit qualifying vehicles

Credit: IRS

The tax credit changes come just a week after Tesla CEO Elon Musk met with several high-ranking officials in Washington D.C. last week to discuss EVs and “shared goals around electrification.”

One of the topics of the meeting was “the broader cause of electrification.” EV adoption has been a main point of emphasis for Tesla, and its influence on other car companies to also develop competitive electric vehicles has been a critical part of the country’s adoption of battery-powered cars.

The IRS invited consumers to comment on the tax credit program, and petitions were spread across the internet, garnering tens of thousands of signatures supporting a revision to the program.

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Other new additions to the qualified vehicles list are the Ford Mustang Mach-E, Cadillac Lyriq, and Volkswagen ID.4, which will benefit from the program’s reclassification of SUVs and Crossovers.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Blue Origin announces Super-Heavy New Glenn 9×4 to Rival SpaceX Starship

The announcement followed the company’s successful NG-2 launch on November 13.

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Credit: Blue Origin/X

Blue Origin has revealed plans to develop New Glenn 9×4, a “super heavy” rocket designed to deliver 70 metric tons to low-Earth orbit and directly compete with SpaceX’s Starship. 

The announcement followed the company’s successful NG-2 launch on November 13, which deployed NASA’s ESCAPADE (Escape and Plasma Acceleration Dynamics Explorers) Mars mission and landed the first stage.

Upgraded engines and reusability

As noted in a Universe Today report, Blue Origin will roll out upgraded BE-4 engines producing 640,000 lbf each, up from 550,000 lbf, starting with NG-3. This should boost the New Glenn rocket’s total first-stage thrust to 4.5 million pounds. Upper-stage BE-3U engines are expected to improve from 320,000 lbf to 400,000 lbf over the next few flights as well.

“These enhancements will immediately benefit customers already manifested on New Glenn to fly to destinations including low-Earth orbit, the Moon, and beyond. Additional vehicle upgrades include a reusable fairing to support increased flight rates, an updated lower-cost tank design, and a higher-performing and reusable thermal protection system to improve turnaround time,” Blue Origin noted. 

New Glenn “Super Heavy” 9×4

The super-heavy New Glenn 9×4, with nine BE-4s on the booster, four BE-3Us on the upper stage, will feature an 8.7-meter payload fairing. Blue Origin expects New Glenn 9×4 to be capable of transporting 70 metric tons to LEO, 14 tons to GSO, and 20 tons to trans-lunar injection, as noted by the company in a blog post. This is very impressive, as New Glenn 9×4’s capacity exceeds Falcon Heavy, SpaceX’s largest rocket available to consumers today. Falcon Heavy is capable of carrying up to 64 metric tons to low Earth orbit in a fully expendable configuration.

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That being said, SpaceX’s Starship’s capacity is extremely impressive. As per SpaceX, Starship is designed to be capable of carrying up to 100-150 metric tonnes to orbit in its fully reusable configuration. At its expendable configuration, Starship’s capacity enters unheard-of territory, with SpaceX stating that the vehicle could transport 250 metric tonnes of cargo. 

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Tesla FSD approved for testing in Nacka, Sweden, though municipality note reveals aggravating detail

Nacka, Sweden, a municipality just a few miles from Stockholm, has given its approval for FSD tests.

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Credit: Grok Imagine

Tesla has secured approval for FSD testing in an urban environment in Sweden. As per recent reports from the Tesla community, Nacka, Sweden, a municipality just a few miles from Stockholm, has given its approval for FSD tests. 

A look at the municipality’s note regarding FSD’s approval, however, reveals something quite aggravating. 

FSD testing approval secured

As per Tesla watcher and longtime shareholder Alexander Kristensen, Nacka is governed by the Moderate Party. The shareholder also shared the municipality’s protocol notes regarding approval for FSD’s tests. 

“It is good that Nacka can be a place for test-driving self-driving cars. This is future technology that can both facilitate mobility and make transportation cheaper and more environmentally friendly,” the note read. 

The update was received positively by the Tesla community on social media, as it suggests that the electric vehicle maker is making some legitimate headway in releasing FSD into the region. Sweden has been particularly challenging as well, so securing approval in Nacka is a notable milestone for the company’s efforts. 

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Aggravating details

A look at the notes from Nacka shows that FSD’s proposed tests still met some opposition from some officials. But while some critics might typically point to safety issues as their reasons for rejecting FSD, those who opposed the system in Nacka openly cited Tesla’s conflict with trade union IF Metall in their arguments. Fortunately, Nacka officials ultimately decided in Tesla’s favor as the company’s issues with the country’s unions are a completely different matter.

“The left-wing opposition (S, Nackalistan, MP and V) voted no to this, referring to the fact that the applicant company Tesla is involved in a labor market conflict and does not want to sign a collective agreement. We believe that this is not an acceptable reason for the municipality to use its authority to interfere in a labor law conflict.

“Signing a collective agreement is not an obligation, and the company has not committed any crime. The municipality should contribute to technological development and progress, not work against the future,” the note read.

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Tesla Model 3 and Model Y named top car buys in Norway

Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability.

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Credit: Grok Imagine

Norway’s annual roundup of the best car purchases featured Tesla’s two main sellers this year, with the Model 3 and Model Y securing top positions in their respective segments. 

Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability. The verdict comes as electric vehicle adoption remained above 95% of new vehicle sales in the country.

Tesla Model 3 strengthens its value position

Among compact EVs, the Tesla Model 3 maintained its position as the best overall buy thanks to its strong blend of performance, efficiency, and updated features. Reviewers noted that every trim offered compelling value, especially with the all-electric sedan’s improved cabin ergonomics and the return of the turn-signal stalk, which was one of the few previous complaints among drivers. 

The Model 3’s mix of long-range capability, low operating costs, and responsive handling has continued to set the benchmark for compact EVs in Norway. While competitors from Hyundai, Volkswagen, and Peugeot have narrowed the gap, Tesla’s price-to-capability ratio has remained difficult to beat in this segment, Motor.no reported.

“The Model 3 clearly offers the best value for money in the compact class, no matter which version you choose. Now it also gets the turn signal lever back. This eliminates one of the few flaws in a driving environment that many believe is the best on the market,” the publication wrote. 

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Tesla Model Y claims its crown

The Tesla Model Y emerged as Norway’s top family-car purchase this year. The latest refresh introduced improvements in ride quality, styling, and interior materials, allowing the Model Y to deliver a more premium driving experience without a substantial price increase. 

Reviewers praised its spacious cabin, strong safety profile, and practical range, all of which reinforced its appeal for families needing an all-purpose electric crossover. The Model Y remains especially notable given its continued popularity in Norway even as Tesla faces declining sales in other global markets.

“The Model Y is back as the winner in the family class. The upgrade in the new year was even more extensive than expected. It is a slightly more elegant and significantly more comfortable Model Y that solidifies its position as Norway’s best car purchase in the most important class,” the Norwegian motoring publication noted.

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