The IRS has released which Tesla models will qualify for the 2023 tax credit
Tesla
As of January 1, 2023, Americans can claim a $7,500 tax credit when buying a Tesla (and other electric vehicles). The Inflation Reduction Act allows eligible buyers the opportunity to claim a clean vehicle tax credit of up to $7,500 under Internal Revenue Code Section 30D.
We knew this was coming, and it slowed demand as shoppers were delaying their purchases until the new year. However, Tesla introduced an end-of-year sale, discounting their vehicles by $7,500 to encourage people not to wait.
Tesla Models That Qualify for the Tax Credit
The Tesla discount disappears on December 31, 2022, and the new government tax credit kicks in. But it is important to note that not all Teslas qualify for the clean vehicle tax credit. Model S and Model X are not on the list of eligible vehicles due to price, but the rear wheel and long-range versions of the Model 3 did make the list if the manufacturer's suggested retail price is below $55,000.
Six versions of the Model Y also made the list. They include the all-wheel drive, long-range and performance versions in the five-seat and seven-seat variations. Interestingly, Tesla does not produce a Model Y Performance in the seven-passenger setup, but it’s available for credit.
The IRS appears to work closely with vehicle manufacturers to determine eligible models. This could be telling of what Tesla plans to offer in 2023.
We may not only see a seven-seater performance Model Y, but we may also see Tesla reintroduce the Long Range Model 3 or Model Y for under $55,000 in 2023.
The Model Y all-wheel drive, long-range and performance five-seat variants do not currently qualify for the tax rebate according to the IRS since their MSRP is above the $55,000 threshold. We'll have to see if Tesla makes any changes to these models to get them under the $55,000 MSRP limit.
Model Year
Vehicle Description
Applicable MSRP Limit
2023
Tesla Model 3 Rear Wheel Drive
$55,000
2023
Tesla Model 3 Long Range
$55,000
2023
Tesla Model Y All-Wheel Drive - 7 seat variant (3-rows)
$80,000
2023
Tesla Model Y Long Range - 7 seat variant (3-rows)
$80,000
2023
Tesla Model Y Performance - 7 seat variant (3-rows)
$80,000
2023
Tesla Model Y All-Wheel Drive - 5 seat variant (2-rows)
$55,000
2023
Tesla Model Y Long Range - 5 seat variant (2-rows)
$55,000
2023
Tesla Model Y Performance - 5 seat variant (2-rows)
$55,000
Older EVs also Qualify
The tax credits are not just for vehicles purchased in 2023. According to the IRS’ website, purchases made between August 17 (when the legislation was announced) and December 31, 2022, may also qualify for a tax break. There is also a used EV tax credit allowing consumers tax credits for up to $4,000 or 30% of the cost of a used EV that’s at least two years old.
To check if your vehicle meets requirements, use the vehicle identification number decoder on the Department of Energy’s website.
What is the Inflation Reduction Act?
The government says the Inflation Reduction Act is “the most significant climate legislation in U.S. history.” It includes $739 billion aimed at “green power, lower costs through tax credits, reduce emissions, and advance environmental justice.” When announced, the government said, “It will offer new access to tax credits as well as grants and incentives to reduce air pollution.”
The Inflation Reduction Act also has several credits available for EV charging. There is a property credit for companies that install EV chargers. The IRS will offset up to 30 percent of the total costs of purchase and installation of charging equipment, up to $100,000 per charger. Experts believe this new legislation will help the U.S. reduce emissions by 40% by 2030.
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One of the most common questions new Tesla owners have is about "phantom drain" – the energy your car consumes while it's parked. While Teslas are incredibly efficient, there is still some drain due to certain features being enabled or due to the vehicle’s battery management system (BMS).
While you can’t turn off the BMS, which maintains your battery at an ideal temperature, you can ensure that no features are enabled that consume energy while your vehicle is parked. This is especially important when leaving your vehicle for long periods, such as going on vacation.
We’ll go through all Tesla features that consume energy even when the vehicle is turned off.
As a note, almost all of the features below will automatically disable themselves if your vehicle's battery drops to 20%, thereby preventing them from completely draining your battery. However, this isn’t always enough if you’re leaving your vehicle for several days since the BMS will remain on to protect your battery.
Sentry Mode
Sentry Mode is one of the biggest energy drainers, but it’s also one of the most useful features. It helps protect your vehicle with a 360-degree video security system that surrounds your vehicle, providing alerts and recordings in the event of an incident.
Sentry Mode continuously processes video from up to six of your vehicle’s cameras. This requires leaving the Autopilot computer and cameras active, resulting in high energy usage. Sentry mode consumes roughly one to two miles worth of battery per hour, but this number varies depending on your specific model. The average person drives about 32 miles per day (12k miles per year), which means that Sentry Mode costs about 50% of the cost of driving the vehicle.
There’s no doubt that Sentry Mode is useful, but it should be used selectively in areas that may be more prone to break-ins.
You can turn Sentry Mode on or off by going to Controls > Safety > Sentry Mode on your vehicle touchscreen. You can enable Sentry Mode for single instances by going to Controls > Sentry Mode, which will turn it on for that one parking session only. You can also exclude locations where Sentry Mode won’t come on, such as Home, Work or locations listed in your favorites.
Sentry Mode can also be enabled or disabled from the Tesla App from Security & Drivers > Sentry Mode.
Cabin Overheat Protection
Not a Tesla App
Cabin Overheat Protection helps to keep the interior of your car from reaching dangerously high temperatures on hot days. This does not keep humans or pets safe, but it does help to keep temperature-sensitive items at a more reasonable temperature if you leave them inside, such as electronics.
You can turn it on and adjust the settings from Controls > Safety > Cabin Overheat Protection. The feature offers three options: Off, No A/C, and On.
The No A/C option will use the fan to circulate air once the cabin temperature exceeds 105ºF without using the A/C. This option helps conserve energy while also usually preventing the vehicle from getting too hot. However, if the vehicle is parked in the sun on an extremely hot day, it can still reach temperatures of 130ºF or higher.
In most cases, it does help keep the steering wheel and seats cooler and it’s a good balance between keeping the option off completely or having it use high amounts of energy.
If you select the AC option, you can set the activation temperature to 90°F (32 °C), 95°F (35°C), or 100°F (40°C). The chosen temperature and the temperature outside will play a significant role in how much energy this feature actually uses, especially on a hot summer day.
Cabin Overheat Protection has no bearing on the safety or functionality of your vehicle and only operates for up to 12 hours after leaving the vehicle. We generally don’t recommend enabling this feature unless you have a specific reason to do so.
You can also enable or disable Cabin Overheat Protection, as well as adjust the operating temperature from the Tesla app by selecting Climate and then swiping up on the temperature module at the bottom of the screen.
Keep Accessory Power On
Not a Tesla App
Now available on all vehicles as of Tesla’s 2025 Spring Update, Keep Accessory Power will keep your 12V power sockets and USB ports active without needing to use Camp Mode. This also keeps the wireless phoen chargers enabled, letting you charge or power a device while you’re not in the vehicle. However, this option does use a good amount of energy, even if there are no devices plugged in.
The Model Y and Model X include a 12V socket in the rear left pillar of the vehicle, alongside a 12V socket in the front of the vehicle. The Model 3 and Model S only have a 12V socket in the front of the vehicle. For the Cybertruck, this feature keeps the 120V and 240V in the rear active as well.
You can turn this feature on by going to Controls > Charging > Keep Accessory Power On. This feature is disabled by default and is turned off once the vehicle battery drops to 20% or below. However, it will remain on any time the vehicle has a 20% or higher state of charge, which could cause long-term battery drain issues.
This feature should only be used when you actively need it and then should be turned off. Several people have fixed their battery drain issues in their vehicles after realizing this option was left on.
Similar to Sentry Mode, this feature can use up to one mile per hour of range when enabled, even if there are no devices plugged in. It will consume slightly more energy while charging devices, depending on the device.
Summon Standby
Summon Standby keeps your car in a low-power state, meaning that the vehicle’s Autopilot is asleep, but not turned off. When the vehicle receives a summon request, it’s ready to go almost instantly, instead of the user having to wait for the vehicle to wake up and power on.
Without Summon Standby, it can take 30 seconds to a minute for Summon to be available through the Tesla app.
This feature doesn’t draw as much power as Sentry Mode, but it’s similar. It can consume about 0.5 to 1 mile of range per hour. We don’t recommend keeping this option on unless you Summon your vehicle often.
Note: If you keep Sentry Mode on, Summon is also available immediately, as the Autopilot computer is already powered on and the vehicle doesn’t go to sleep.
Third-Party Services
Third-party apps that track your car’s data through the Tesla API can wake up your vehicle or prevent it from sleeping properly. While Tesla’s API has been improved to prevent some of these issues, the newest features aren’t available for the legacy Model S and Model X.
These services will only cause a noticeable difference in battery drain if they’re preventing your vehicle from falling asleep. You can tell if your vehicle is asleep by opening the Tesla and seeing the status of your vehicle in the top left corner.
Scheduled Preconditioning
enjustice3192/Reddit (Edited by NATA)
You can schedule times for your vehicle to automatically precondition the cabin, letting you get into a prefectly warmed or cooled vehicle every morning and evening. While this feature is great if you have a consistent schedule, it can also be the cause of some additional battery drain.
Preconditioning your cabin, either through the scheduled process or manually as a one-time action through the Tesla app, also warms up the battery, which can help improve regenerative braking on cold days or speed up Supercharging on trips.
If possible, keep your vehicle plugged in while preconditioning, as it will draw power from the wall unit instead of the vehicle battery, preventing the vehicle’s range from being lowered. Even a 120v plug can help in these situations.
You can check or adjust your vehicle’s scheduled preconditioning times by going to Controls > Schedule in the vehicle or navigating to Schedule in the Tesla app.
Climate - Dog, Camp, and Keep Modes
Not a Tesla App
Tesla also offers several options to keep your climate system running once you’ve exited the vehicle, either to keep it warm or cool while you’re making a stop.
To enable or disable any of these settings, swipe up from the temperature on your vehicle display while the vehicle is in Park, and then touch Dog Mode, Camp Mode, or Keep Climate.
Dog Mode
Dog Mode is designed to keep a comfortable temperature for your pet while active. You can monitor the temperature remotely, as well as see into the Cabin Camera while Dog Mode is active. This mode also displays the current cabin temperature on the center display, helping inform nearby passersby that your pet is safe and comfy.
As a note, Dog Mode disables the window controls inside the vehicle.
Camp Mode
Camp Mode enables you to power electronics through the USB ports (or low-voltage outlets) while maintaining cabin temperature. The touchscreen also remains on, allowing you to listen to music, play games, or watch movies. The doors will also remain unlocked, and Tesla’s walk-away door lock feature will be disabled. This is ideal to use when you’re stepping away from the vehicle with someone still inside it and want the doors to stay unlocked and the alarm to remain off.
Keep Climate
Keep Climate will keep the vehicle’s temperature at the currently selected temperature while you step away. All other features remain on, such as auto door locking. This is a good option if you’re running in quickly to pick up a child at school or daycare and want to keep your vehicle comfortable without having to remember to preheat or precool the vehicle. Keep Climate will stay enabled for up to two hours, or until the battery reaches 20%, so it isn’t a long-term cause of battery drain.
While Tesla vehicles come with numerous useful features, it’s important to know which ones consume energy even when your vehicle is parked, which could offset any potential gas savings. Use these features selectively when needed, rather than leaving them on 24/7, as they’ll continue to consume power even through the night when you’re unlikely to take advantage of them.
If you’re experiencing issues with battery drain, we recommend going through this list of features and confirming that each one is turned off.
In a move that has both surprised and frustrated Tesla and non-Tesla owners, the New Jersey Turnpike Authority (NJTA) is actively removing Tesla Superchargers from its service plazas, replacing them under an exclusive agreement with Applegreen Electric—the company that operates the plazas.
This transition, which was officially announced by the Tesla Charging account on X, will see all 64 of Tesla’s V3 Supercharger stalls removed from the Turnpike. This has raised some eyebrows, especially as the Applegreen sites, which will only feature CCS1 plugs, won’t be online until later this year.
The New Jersey Turnpike Authority ("NJTA") has chosen a sole third-party charging provider to serve the New Jersey Turnpike and is not allowing us to co-locate. As a result, NJTA requested 64 existing Supercharger stalls on the New Jersey Turnpike to not be renewed and be… pic.twitter.com/sosNIwMfYu
Tesla’s presence on the Turnpike dates back to 2014 when the NJTA granted Tesla a pilot license for just eight Supercharger stalls. That then rapidly expanded, and by the end of 2023, Tesla had 64 V3 Supercharger stalls active across the Turnpike, boasting their usual impressive 99.9% uptime, with a 30% lower cost than competitors nearby.
With the increasing adoption of the North American Charging Standard (NACS) by other automakers, Tesla's network is becoming the de facto fast-charging standard for a growing number of non-Tesla EVs, which makes this decision even harder to justify. Not only will Tesla vehicles be unable to charge at these locations, but many new EVs with NACS ports will also be left out.
Applegreen
Applegreen’s chargers are less than ideal. They resemble gas stations for EVs, which is a huge step back from Tesla’s elegant solution. Besides currently only supporting CCS1 and CHAdeMO charging connectors, which leaves out the majority of EVs, they also provide a worse charging experience.
These locations are often more expensive than Tesla Superchargers, but just like Tesla, the price does vary by location. We spot-checked several locations and noticed that prices were roughly about 10% higher per kWh than a similar Tesla charger nearby. Applegreen’s chargers also include screens and a credit card slot, requiring customers to pay for their charging sessions, just as they would for gasoline.
While we don’t have statistics on their uptime, it’s hard to argue that it’d be better than Tesla’s, which has live monitoring and often fixes issues within hours, which was recently demonstrated when it rebuilt a Supercharger less than 48 hours after it was burned down. Many users complain of Applegreen’s chargers, saying they don’t work or are difficult to use. Their app on iOS currently has a 1.9 rating out of 5.
Tesla’s Proposal
The landscape for EV charging on the Turnpike shifted in March 2023, when the NJTA amended its agreements with Applegreen to make it an exclusive offering. Despite Tesla offering what it cites as above-market terms, which included upgrading all Superchargers on the Turnpike to include Magic Docks (NACS + CCS1 chargers) for universal EV compatibility and card readers for better billing for non-Tesla owners. Tesla also offered to co-host, allowing Applegreen chargers and Tesla Superchargers to be located side by side. However, NJTA still declined to let Tesla keep any of its existing Superchargers online.
This is clearly a move for Applegreen to capitalize on its property and generate revenue by installing its own branded chargers. However, with Applegreen’s chargers only having CCS1 cables, calling them “universally” compatible while making Tesla’s seem exclusive to Tesla vehicles is laughable. This is clearly a step in the wrong direction that will hurt all EV owners. If anything, NJTA should be requiring Applegreen to maintain Tesla’s Superchargers on the premises, while also allowing Applegreen to install their own chargers.
NJTA instead announced that Tesla must decommission its Superchargers soon, which will leave EV drivers without viable options while traveling on the 117-mile-long NJ Turnpike. That’s millions of dollars of Tesla charging infrastructure that’s already being used - being removed without a replacement in place for potentially months.
The decision has been met with some widespread criticism over the last few days. The reduced options, reduced convenience, increased costs, and reliability concerns are chief among the concerns of Tesla and other EV drivers. However, the lack of transparency behind the decision, as well as the exclusivity to Applegreen, has led many to accuse the NJTA of corruption and backdoor deals, including Elon.
Anticipating the worst, however, Tesla’s Supercharging team has been working to ensure charging continuity. Between 2022 and today, Tesla has proactively built 116 replacement Supercharger stalls at eight new locations just off the Turnpike, anticipating this would happen. While this will make it less convenient for EVs reliant on NACS, it won’t leave them stranded without a place to charge. Tesla’s trip planner has already been adjusted to route drivers to these new sites as well.
While Tesla is clearly invested in expanding access to electric vehicle charging - whether for its own direct customers or for other EVs, it seems that some organizations believe the easiest way to meet “green goals” is to find the solution that’s best for their pocketbook.
We’re hoping that these types of exclusivity deals don’t become common as they harm all current EV owners and reduce electric vehicle adoption.
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