Elon Musk Says IRS Qualification Norms For EV Credits 'Messed Up' — Why He Finds It 'Bizarre'

What Happened: A Tesla influencer pointed out that the electric vehicle maker’s Model Y SUV does not qualify as an SUV for the U.S. tax credit as its weight of 238 pounds is considered to be too light.

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Taking a potshot at the government, the influencer offered a solution in jest. “Attach lead weights totaling 250 pounds to interior rear under-trunk via hex bolts. After sale is complete, provide free-of-charge first service to remove said weights,” he said on Twitter, tagging Tesla and CEO Elon Musk.

The tweet caught Musk’s attention, and in reply, the billionaire lamented being penalized for making the company’s SUV too mass-efficient. “This is bizarre,” he added.

Musk replied to it by saying, “This is messed up.”

This would erode Tesla’s margin, which is already under pressure due to price cuts announced toward the end of 2022 to stimulate demand.

Price Action: Tesla shares fell about 65% in 2022 and ended the year at $123.18, according to Benzinga Pro data.

Read Next: Tesla Q4 Deliveries Fail To Clear Lowered Bar: What EV Investors Need To Know

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