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Why Tesla Model Y tax credit inclusion is good for some and bad for others
The Tesla Model Y complete lineup was recently added to the IRS list of qualifying vehicles that will give buyers a $7,500 tax credit. While it may seem like the company’s huge price cuts coupled with the tax credit would be good for everyone, it spells bad news for competitors that offer comparable EVs in the same category.
On Friday, the Model Y’s entire lineup was added to the list of qualifying vehicles after the U.S. Department of Treasury said, “The change will allow crossover vehicles that share similar features to be treated consistently.” The Model Y’s five-seat configurations did not reach the weight requirement to be considered SUVs and were put in another category that included “All Other Vehicles.” The price limit to qualify for the tax credit differs by $25,000: $55,000 for All Others, and $80,000 for SUVs.
Tesla Model Y’s complete lineup now qualifies for EV tax credits through Inflation Reduction Act
The inclusion is obviously a good thing for consumers, and events that transpired afterward are good for the investors. With Tesla’s $13,000 price cut on Model Y configurations in early January, the automaker had quadrupled the vehicle’s addressable market. At the same time, it had offered a substantial discount to some who could already justify the purchase, and if they were on the fence, there’s no denying that this inevitably won them over.
Lower prices mean more sales. The Model Y was already making waves in terms of Tesla’s total concentration of sales by model, and it has routinely competed with the Model 3 in various markets and won in many of them. However, the cuts meant Tesla would have to eat some of its margins, which were incredibly high, trailing only Ferrari and BMW in that category. Analysts and more hellbent investors who are obsessed with the company making as much money as possible may not have loved the price cuts, and Tesla obviously will not be making as much of a profit per vehicle. However, on Saturday, following the Model Y’s inclusion to the qualifying vehicles list, Tesla bumped up prices by $1,500.
Is it the $13,000 the automaker trimmed in January? No, absolutely not. But Tesla is already making considerable money on each unit, and the company’s industry-leading tech and Supercharging network are inevitably what will win consumers over, especially as the vehicle is still vastly more affordable than before. With Tesla reaching 1.313 million deliveries last year in 2022, the company has pulled out all the stops to get sales figures off to a fast start in 2023, with various discounts and other programs to push vehicles out the door.
Credit: Tesla
The old saying goes that one’s trash is another’s treasure, and in this instance, the competition is getting the trash while consumers are getting the treasure. Tesla’s massive price cuts and now qualifying tax credits make it a pretty simple choice for consumers. Without a doubt, one of the biggest issues with EV ownership, or at least in the broad consensus of the average consumer, is “Where will I charge my EV?” While this question still makes me chuckle to myself and want to say, “That thing you live in can do it. You know? Your house?” It’s much more complex than that.
A charging network is really what sets Tesla apart from the others. Some consumers may have been willing to spend a little extra to have the confidence that they could be surrounded by charging options, and Tesla is really the only automaker that has such broad options in terms of charging that it really doesn’t have a current competitor. If Tesla does end up opening up its network to other EVs, then this conversation changes. Of course, other companies out there have a robust infrastructure that is quickly growing. Still, these companies are often plagued by maintenance issues, rising costs, and a less-than-desirable experience.
Tesla is already controlling a majority of the U.S. market for electric vehicles, and there are worthy competitors. Volkswagen, Ford, and General Motors all have a wide variety of strategies in their plans to dethrone Tesla. Meanwhile, Polestar, Rivian, Lucid, and other startups are still working through their issues, which are usually money-related.
Tesla is well ahead of the curve, especially as it has already figured out mass production and launched a lineup of competitive vehicles with plans of more styles and applications to come. The inclusion of the Model Y, which CEO Elon Musk believes will be the best-selling car in the world one day, to the tax credit program only spells disaster for the companies attempting to catch up. Meanwhile, Tesla sits comfortably in the driver’s seat, and there does not seem to be any true comparison in current sight.
Disclosure: Joey Klender does own Tesla stock.
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.
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Tesla discloses interesting collaboration partner for Supercharging
This BOXABL collaboration would be a great way to add a rest stop to a rural Supercharging location, and could lead to more of these chargers across the U.S.
Tesla disclosed an interesting collaboration partner in an SEC filing, which looks like an indication of a potential project at Supercharger sites.
Tesla said on Tuesday in the filing that it was entering an agreement with BOXABL to design and build a Micromenity structure. Simply put, this is a modular building, usually a few hundred square feet in size, and it has been seen at Superchargers in Europe.
In Magnant, France, Tesla opened a small building at a Supercharger that is available to all EV owners. There are snacks and drinks inside, including ice cream, coffee, a gaming console, and restrooms. It gives people an opportunity to get up and out of their cars while charging.
This building was not built by BOXABL, but instead by bk World Lounges. It is likely the final Supercharging stop before people get to Paris, as it is located 250 kilometers, or 155 miles, from the City of Light.
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Magnant has 56 stalls, so it is a large Supercharging stop compared to most. The building could be a sign of things to come, especially as Tesla has opened up larger Supercharger stations along major roadways.
It is for just a single building, as the Scope of Work within the filing states “a comprehensive package for one Micromenity building.”
NEWS: BOXABL, a company that creates modular, prefabricated buildings, has entered into an agreement with @Tesla.
This is Tesla formally contracting BOXABL to design, engineer, and build a pilot “Micromenity” structure, a compact, modular building unit.
While some info in the… pic.twitter.com/RabJczGpEp
— Sawyer Merritt (@SawyerMerritt) December 9, 2025
Superchargers are commonly located at gas stations, shopping centers, and other major points of interest. However, there are some stops that are isolated from retail or entertainment.
This BOXABL collaboration would be a great way to add a rest stop to a rural Supercharging location, and could lead to more of these chargers across the U.S.
Tesla has done a lot of really great things for Supercharging this year.
Along with widespread expansion, the company launched the “Charging Passport” this week, opened the largest Supercharger in the world in Lost Hills, California, with 168 chargers, opened the Tesla Diner, a drive-in movie restaurant in Los Angeles, and initiated access to the infrastructure to even more automakers.
Elon Musk
Tesla CEO Elon Musk confirms Robotaxi safety monitor removal in Austin: here’s when
Musk has made the claim about removing Safety Monitors from Tesla Robotaxi vehicles in Austin three times this year, once in September, once in October, and once in November.
Tesla CEO Elon Musk confirmed on Tuesday at the xAI Hackathon that the company would be removing Safety Monitors from Robotaxis in Austin in just three weeks.
This would meet Musk’s timeline from earlier this year, as he has said on several occasions that Tesla Robotaxis would have no supervision in Austin by the end of 2025.
On Tuesday, Musk said:
“Unsupervised is pretty much solved at this point. So there will be Tesla Robotaxis operating in Austin with no one in them. Not even anyone in the passenger seat in about three weeks.”
Musk has made the claim about removing Safety Monitors from Tesla Robotaxi vehicles in Austin three times this year, once in September, once in October, and once in November.
In September, he said:
“Should be no safety driver by end of year.”
The safety driver is just there for the first few months to be extra safe.
Should be no safety driver by end of year.
— Elon Musk (@elonmusk) September 4, 2025
On the Q3 Earnings Call in October, he said:
“We are expecting ot have no safety drivers in at least large parts of Austin by the end of this year.”
Finally, in November, he reiterated the timeline in a public statement at the Shareholder Meeting:
“I expect Robotaxis to operate without safety drivers in large parts of Austin this year.”
Currently, Tesla uses Safety Monitors in Austin in the passenger’s seat on local roads. They will sit in the driver’s seat for highway routes. In the Bay Area ride-hailing operation, there is always a Safety Monitor in the driver’s seat.
Three weeks would deliver on the end-of-year promise, cutting it close, beating it by just two days. However, it would be a tremendous leap forward in the Robotaxi program, and would shut the mouths of many skeptics who state the current iteration is no different than having an Uber.
Tesla has also expanded its Robotaxi fleet this year, but the company has not given exact figures. Once it expands its fleet, even more progress will be made in Tesla’s self-driving efforts.
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SpaceX reportedly mulling IPO, eyeing largest of all time: report
“I do want to try to figure out some way for Tesla shareholders to participate in SpaceX. I’ve been giving a lot of thought to how to give people access to SpaceX stock,” Musk said.
SpaceX is reportedly mulling an initial public offering, eyeing what would be the largest valuation at the time of availability of all time, a new report from Bloomberg said on Tuesday.
It is one of many reports involving one of Elon Musk’s companies and a massive market move, as this is not the first time we have seen reports of an IPO by SpaceX. Musk himself has also dispelled other reports in the past of a similar nature, including an xAI funding round.
SpaceX and Musk have yet to comment on the report. In the past, untrue reports were promptly replied to by the CEO; this has not yet gained any response, which is a good sign in terms of credibility.
However, he said just a few days ago that stories of this nature are inaccurate:
“There has been a lot of press claiming SpaceX is raising money at $800B, which is not accurate. SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors. Valuation increments are a function of progress with Starship and Starlink and securing global direct-to-cell spectrum that greatly increases our addressable market. And one other thing that is arguably most significant by far.”
There has been a lot of press claiming @SpaceX is raising money at $800B, which is not accurate.
SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors.
Valuation increments are a…
— Elon Musk (@elonmusk) December 6, 2025
Musk has discussed a potential IPO for SpaceX in recent months, as the November 6 shareholder meeting, as he commented on the “downsides” of having a public company, like litigation exposure, quarterly reporting pressures, and other inconveniences.
Nevertheless, Musk has also said he wants there to be a way for Tesla shareholders to get in on the action. At the meeting in early November, he said:
“I do want to try to figure out some way for Tesla shareholders to participate in SpaceX. I’ve been giving a lot of thought to how to give people access to SpaceX stock.”
Additionally, he added:
“Maybe at some point., SpaceX should become a public company despite all the downsides of being public.”
Musk has been historically reluctant to take SpaceX public, at times stating it could become a barrier to colonizing Mars. That does not mean it will not happen.
Bloomberg’s report cites multiple unidentified sources who are familiar with the matter. They indicate to the publication that SpaceX wants to go public in mid-to-late 2026, and it wants to raise $30 billion at a valuation of around $1.5 trillion.
This is not the first time SpaceX has discussed an IPO; we reported on it nine years ago. We hope it is true, as the community has spoken for a long time about having access to SpaceX stock. Legendary investor Ron Baron is one of the lucky few to be a SpaceX investor, and said it, along with Tesla, is a “lifetime investment.”
Tesla bull Ron Baron reveals $100M SpaceX investment, sees 3-5x return on TSLA
The primary driver of SpaceX’s value is Starlink, the company’s satellite internet service. Starlink contributes 60-70 percent of SpaceX’s revenue, meaning it is the primary value engine. Launch services, like Falcon 9 contracts, and the development of Starship, also play supporting roles.
Tesla discloses interesting collaboration partner for Supercharging
Tesla CEO Elon Musk confirms Robotaxi safety monitor removal in Austin: here’s when
