Tesla Model 3, Y removed from CVRP exemption after 'inflationary pressure' hikes prices

Tesla’s mass-market Model 3 and Model Y vehicles have been pulled from the California Clean Vehicle Rebate Project (CVRP) following the automaker’s latest price hike due to “inflationary pressure”.

A representative of the CVRP program told car direct The Model 3 and Model Y were recently taken out of the program as price hikes implemented by Tesla pushed EVs above the program’s MSRP cap. The $2,000 credit was removed from the Model 3 when it exceeded the $45,000 MSRP cap the organization has for cars introduced in February, as the Model Y’s $60,000 plus price tag makes it a credit due to the price limit on SUVs. For disqualifications and crossovers.

Any customer who ordered their vehicle on or before March 15 will still be eligible for a $2,000 discount. According to the representative, eligibility is based on the date of order, not the date of delivery.

Qualifying for CVRP credit is not a straightforward process, as the report shows. For a vehicle to qualify for CVRP credit, eligibility is based on the MSRP of the base trim level of the car and not the destination charge. The $70,000 Ford Mustang Mach-E GT Performance trim still qualifies for the credit as the base trim level of the Mach-E is still below the $60,000 MSRP cap. Currently, the most affordable Model Y is the Long Range all-wheel-drive configuration, which sits at $62,990 before any potential savings are included, disqualifying both Tesla’s Model Y trims from the program.

The price hike was anticipated by Tesla after CEO Elon Musk said on Twitter last week that the company, along with his aerospace arm SpaceX, was feeling inflationary pressures. Within a day, Tesla implemented a price hike for every vehicle in its lineup, with the Model X Plaid getting the most significant increase at $12,500.

Tesla raises prices across its entire vehicle lineup, Model X Plaid sees $12.5k increase

The report also noted that a CVRP representative indicated that Tesla customers were getting a high volume of calls asking questions about the changes. Tesla customers have also been disqualified from receiving the federal EV tax credit, which is valued at $7,500 because the automaker sold more than 200,000 units. General Motors is currently the only other manufacturer not to qualify for the program. This week, Polestar began taking orders for the single motor Polestar 2, which does not qualify for the CVRP credit as its base level price is above $45,000. Polestar has not sold 200,000 units, so customers will qualify for a $7,500 credit.

If the Model 3’s base trim level drops below $45,000, Tesla may be eligible for the CVRP credit. When this happens supply chain constraints, including semiconductors and chips, have been in high demand since the start of the COVID-19 pandemic in March 2020.

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Tesla Model 3, Y removed from CVRP exemption after ‘inflationary pressure’ hikes prices






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