Tesla Cybertruck Gets Approval For $7,500 Federal Tax Credit, Here's What You Should Know - Tesla (NASDAQ

Tesla Inc’s (NASDAQ:TSLA) Cybertruck has secured the $7,500 federal tax credit for 2023.

What Happened: According to the U.S. Department of Energy, as of December 7, 2023, two models of Cybertruck have been deemed eligible for the entire $7,500 incentive. These include the all-wheel-drive (AWD) variant as well as the high-end tri-motor Cyberbeast. However, the rear-wheel-drive model, which is slated for release in 2025, is not on the list yet. The tax incentive is solely for pickup trucks priced under $80,000, reported InsideEVs.

Interestingly, the base price of the Cyberbeast, which was launched initially, stands at $99,990, clearly exceeding the price cap for the incentive. Although the AWD model, priced approximately at $79,990, could potentially qualify, Tesla stated that deliveries would only start in 2024. Consequently, it seems unlikely that any Cybertrucks will benefit from the tax credit this year.

Notably, the IRS has listed the more expensive Cyberbeast but not the similarly priced Tesla Model X Plaid. The entire EV tax credit system is set to undergo a revamp in January, with new regulations addressing battery materials sourced from China. The automotive industry is anticipating more clarity on whether the Cybertruck and other electric vehicles will qualify for full tax credits in 2024.

Why It Matters: The pricing of the Cybertruck has been a point of discussion since its first rollout and during the delivery event in November 2023. Many experts have voiced concerns about the Cybertruck’s pricing coming in higher than expected, potentially limiting the demand until the pricing comes down.

This tax credit could help alleviate some of those concerns, making the truck more affordable for consumers. However, with deliveries set to begin in 2024 and the rear-wheel drive model not included in the list, the impact on overall sales remains to be seen. Furthermore, upcoming changes in the EV tax credit system might also influence Cybertruck’s eligibility for full tax credits in 2024.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Photo by Mike Mareen on Shutterstock

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