News
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.
Elon Musk
Tesla’s Elon Musk considers insane Cybertruck mod: ‘Maybe we should make this’
The Cybertruck won’t do what the video shows (at least not in our lifetime), but a very entry-level version of it could be developed.
Tesla CEO Elon Musk has teased what could potentially be the company’s next big project, and while it is likely many, many years away, it shows the company truly has its sights set on the craziest things the world has seen.
Musk shared a video created by Grok Imagine, the AI tool that is able to take images and turn them into videos, showing a Cybertruck flying above the clouds and buildings of what appears to be a very futuristic city.
There are also massive robots roaming around in the video, so it is obviously an illustration of what life could look like in several generations.
However, Musk, who does not shy away from some really optimistic projects and goals, shared the video on X and said, “Maybe Tesla should make this.”
Maybe Tesla should make this https://t.co/9ieoqM03Wu
— Elon Musk (@elonmusk) August 19, 2025
What is depicted in the video is not what we’d see Tesla create anytime soon. However, the company could potentially engineer something to make the Cybertruck hover, as it plans to do with the Roadster.
Of course, this is likely a huge “if” considering the current state of the car industry. Vehicles are becoming more advanced with every passing day as companies like Tesla, Waymo, and others are working to sort out things like autonomous and driverless travel.
Tesla has been working on somewhat of a similar idea with the Roadster, a vehicle that has been delayed on several occasions because of Musk’s spectacular imagination. Earlier this year, Tesla’s Chief Designer, Franz von Holzhausen, revealed Musk wanted to push the limits of that vehicle even more.
It seems it could be on the way soon, considering Tesla has teased an “epic” demo for the car, which could come before the end of the year.
Tesla has been working to make the Roadster hover, using SpaceX cold gas thrusters. It will also utilize these for what could be an incredibly fast 1.1-second 0-60 MPH acceleration rate that has been teased countless times.
This project that Musk is teasing with the Cybertruck is likely one that we will not see in our lifetimes. However, this is just one example of the outlandish ideas Musk continues to tease for Tesla in the future.
News
Tesla Model Y L addresses one huge complaint from many owners
If you have ever used a wireless charger inside a Tesla or almost any vehicle, for that matter, you will notice that your phone will charge slowly, and it will get extremely hot. This is mostly due to the inherent inefficiency of electromagnetic induction, which is the process that wireless chargers use to transfer energy to the phone.
The new Tesla Model Y L is officially launching in China at a great price and with all of the awesome features of the original model, but with more space. The vehicle is also addressing one huge complaint that many owners have discussed.
The new Model Y L features a more spacious interior, new front seats with adjustable headrests, captains chairs, and mechanical armrests in the second row, and B Pillar air vents for improved circulation.
Tesla Model Y L officially launched: price, features, and more
However, there are some other features that are flying under the radar, including one that addresses a common complaint of many Tesla owners: wireless charging.
If you have ever used a wireless charger inside a Tesla or almost any vehicle, for that matter, you will notice that your phone will charge slowly, and it will get extremely hot. This is mostly due to the inherent inefficiency of electromagnetic induction, which is the process that wireless chargers use to transfer energy to the phone.
The inefficiency is evident in the heat, as that is the lost energy that should be going to the phone, but does not.
To combat this problem, Tesla has rolled out a new feature with the wireless charging mat in the Model Y L.
Tesla has used small slit air vents in the center of the wireless charger, which separates the two pads, to blow cool air on the phones to prevent overheating:
In a first for @Tesla, the new Model Y L has air cooled wireless phone chargers. The charging base has small slit air vents in the center that blows cool air onto your phone to prevent overheating.
The left driver’s side wireless charger now supports up to 50W charging speeds… pic.twitter.com/g6o4XgkYYE
— Sawyer Merritt (@SawyerMerritt) August 19, 2025
This will keep the temperature of your phone down and could prevent the dreaded “iPhone too hot” message that deems your device unusable until it reaches a more stable temperature.
Additionally, Tesla has upgraded the driver’s side wireless charger to support 50W charging speeds. The passenger charger remains at 30W.
This is a small but valuable improvement to the wireless charging apparatus could be a game changer, as there have been so many complaints about this feature in other Tesla vehicles.
News
Tesla Model Y Performance zips around Nurburgring with new features
With the performance, there are some improvements to interior aesthetics, but the goal with this particular trim of Tesla vehicles is to improve performance and aerodynamics, bringing a truly first-class experience to one of the best and fastest vehicles on the road.
The long-awaited Tesla Model Y Performance has been spotted zipping around the famed Nurburgring in Germany, a popular location for new vehicles to test their limits ahead of public release.
Earlier this year, Tesla executives Franz von Holzhausen and Lars Moravy both indicated that the updated and upgraded Model Y Performance would be on its way by the end of 2025, and it appears that time is coming close.
New images captured by Wilco Blok and Teslaplaidtokde on X show the Model Y Performance wrapped in camouflage, sporting a handful of new features as the lightning-fast version of the world’s best-selling vehicle prepares for a launch in various markets across the world:
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- Credit: Wilco Blok on Instagram
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- Credit: Wilco Blok on Instagram
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- Credit: Wilco Blok on Instagram
New Features
According to Blok and Teslaplaidtokde, the new Model Y Performance will feature a variety of new improvements compared to the past version.
This is something that was expected, as the launch of the new Model Y over the past year has shown various changes that made a great vehicle even better.
With the performance, there are some improvements to interior aesthetics, but the goal with this particular trim of Tesla vehicles is to improve performance and aerodynamics, bringing a truly first-class experience to one of the best and fastest vehicles on the road.
View this post on Instagram
Here’s what was mentioned as changes so far that have been seen on this test mule at Nurburgring:
- New 21″ wheels
- All black headliner, a big change that was included in the Model Y L, the first time a Model Y has had that option
- Updated brakes
- Bucket seats that appear to be similar to the new Model Y L in China
- New Carbon Fiber Spoiler
- Performance Badging
- Changes to both the front and rear bumper
- Suspension with Adaptive Dampers
View this post on Instagram
Expected Performance Metrics
These are not official figures, but this is what is expected based on what has been seen at the Nurburgring:
- 510 horsepower
- 0-60 MPH in 3.2-3.4 seconds
- 280-290 miles of range
- Anticipating the release of a new Track Mode
The previous iteration of the Model Y Performance featured 503 horsepower and a 0-60 MPH of 3.5 seconds. It also had a top speed of 155, which we believe will be improved with the next version of the Y Performance.
Here is some footage of the Model Y Performance running around the Nurburgring ahead of its release:
🚨 The Tesla Model Y Performance appears to have run some spirited laps at the Nurburgring in preparation for its launch https://t.co/PccY2KY2NF pic.twitter.com/Cd1TVwhNZq
— TESLARATI (@Teslarati) August 18, 2025
Tesla has not yet listed any date or timeframe for the Performance variant to be released. However, it is anticipated to be released by the end of 2025.
Tesla’s Elon Musk considers insane Cybertruck mod: ‘Maybe we should make this’
Tesla Model Y L addresses one huge complaint from many owners
Tesla Model Y Performance zips around Nurburgring with new features
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