IRS Reveals Which Tesla Models Qualify for the 2023 U.S. Tax Credit

By Kevin Armstrong
The IRS has released which Tesla models will qualify for the 2023 tax credit
The IRS has released which Tesla models will qualify for the 2023 tax credit

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.

Sweet Move: Tesla Shifts from Creating EVs to Making Candy

By Karan Singh
Not a Tesla App

Tesla has filed four new trademarks recently, according to the US Patent and Trademark Office. These trademarks aren’t exactly what you’d expect from Tesla – they’re not for cars, not for batteries, and not for any cool new software features.

They’re for sweet, sweet, candy!

Candy Trademarks

Tesla has filed 4 distinct trademarks in its filings with the USPTO, for the following four names.

  • Supercharged Gummy

  • Cyberberry

  • Mango Bolt

  • Dog Mode Chill

The trademarks don’t come with any particular logos, art, or renderings, or it doesn’t reveal anything besides the names of the candy or candy-like items. Tesla filed these trademarks last month on June 25th.

While we’re not quite sure exactly what type of candies these will be, there is one thing we can knock off the bat – given how premium Tesla’s food products have been, these will likely include high-quality ingredients with a matching price point.

Elon Musk previously hinted that he wanted to start a candy company, and claimed he was super serious. Given his usual 2-week timeline, starting it 7-years later under Tesla seems fairly fitting. Jokes aside, we hope that the candies will launch sometime before the Tesla van, otherwise you can expect some more jokes on that front.

Tesla is well known for designing and selling non-vehicle merchandise. In the past, they’ve sold a glass decal that makes your window look like it was shattered with a metal bearing, Tesla Tequila, the Cybertruck whistle and many others.

Maybe we’ll hear more about Elon’s candy ambitions during Tesla’s upcoming earnings call, which will be taking place this coming Tuesday, July 23rd.

Tesla Looking to Hire 800 New Employees After Recent Layoffs, Large Focus on Energy

By Karan Singh
Not a Tesla App

Just three months after Elon Musk fired the entire Supercharger team, and laid off many employees at Tesla, the company is now looking to hire 800 new employees.

This comes after many members of the Supercharger team were hired back after their initial layoffs.

New Hirings

Tesla’s careers page now has more than 800 open positions today, and positions go from anywhere between engineers for artificial intelligence or batteries, ADAS testers in local communities, or service and desk employees for service centers.

Most of the new jobs focus on engineering positions, and many positions in Legal Affairs, Business Support, and vehicle software positions have not been posted or renewed. Those sections remain empty, at least in North America.

Tesla Energy Focus

Interestingly, quite a few of the new positions focus on Telsa Energy and its role in the company. There are several positions for supporting the deployments of Powerwall and Megapack, as well as doing further engineering work on these types of stationary battery systems.

Just recently, Tesla secured a $375 million Megapack contract in Australia – to build one of the biggest 4-hour battery banks in the world. This comes just days after the announcement of a $256 million Megapack contract to expand a different Australian facility.

We’re expecting Tesla to bank more towards its energy business – which has really just started getting off the ground with recent factory expansions and new business. Tesla Powerwall also recently hit some spectacular milestones – 100MW in California delivered to the grid, and 200,000 hours of backup power after Hurricane Beryl in Texas.

Powerwall and Megapack are going to be defining features of Tesla’s business – and we hope to see Tesla Solar – both Solar Panels and Tesla’s Solar Roof, also become more available to the mass market, just like Powerwall is today.

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