The Tesla Cybertruck is now eligible for the $7,500 tax credit as of Jan. 1, which should boost demand for the expensive EV.
Tesla stock tumbled Thursday on weaker-than-expected Q4 deliveries.
The dual-motor Tesla Cybertruck, which starts at $79,990, now qualifies for the federal IRA tax credits, according to fueleconomy.gov. The tri-motor Cyberbeast, which starts at $99,990, is not eligible.
The dual-motor Cybertruck has been below the $80,000 price limit for the IRA tax credit ever since the non-Foundation series variant came online, but it still didn't qualify. It's unclear why, but it may have had something to do with Chinese battery materials or components.
Cybertruck demand appeared to be somewhat sluggish in the fourth quarter, despite the lower non-Foundation price and orders opened up to anyone. That was likely in part due to potential buyers waiting for the IRA tax credit.
The tax credit will surely provide at least a short-term sales boost for the Tesla Cybertruck. It's unclear what the longer-run demand for the Cybertruck is, at least until a single-motor variant eventually launches.
The planned single-motor Cybertruck also is eligible, but it's unclear if Tesla will want to roll that out anytime soon. The EV giant claimed the Cybertruck was gross-margin profitable in Q3, but that was when the average price was over $100,000. A $60,000 single-motor variant, even with improved economies of scale, could be a big money loser.
A further complication is whether IRA tax credits for electric vehicles will be around much longer. President-elect Donald Trump has said he wants to eliminate EV tax credits, a move that Tesla CEO Elon Musk supports.
Early Thursday, Tesla reported fourth-quarter deliveries of 495,570, a new quarterly record, but below estimates of roughly 506,000. Tesla needed 514,925 for 2024 deliveries to top 2023's total of 1.808 million. Tesla also lost its BEV crown to rival BYD, which raced up to 595,413 BEVs in Q4.
EV Tax Credits: $7,500 Is Up For Grabs. Here's How To Get It.
Tesla Stock
TSLA stock fell 6.1% to 379.28 on Thursday, its fifth straight loss. Shares are falling toward their fast-rising 50-day line after breaking the 21-day on Tuesday.
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