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Tesla-Loving California Facing Massive Price Hikes
March 25, 2022
by Chase Bierenkoven Electric Vehicles / 1 Comment
The Tesla Model 3 and Y no longer qualify for a big rebate.
The Tesla Model 3 is an incredibly popular car. It could be argued that the small EV is the face of entry-level luxury EVs. Then again, the same thing could be said about the Tesla Model Y. And it's hard to think of another place where these two cars are more popular than the state of California. We've seen it ourselves, with just about every fifth car that rolls by is one of the two T-branded EVs.
Now, that's turned from a benefit to a problem for Tesla. Both the Model 3 and Y are no longer eligible for California's biggest EV rebate. Both have been excluded from the California Clean Vehicle Rebate Project. This comes hot on the heels of a price hike for the Model Y and Model 3.
The reason given for the exclusion is simple. Vehicles on the CVRP list have a maximum MSRP of $45,000 for cars, defined by the EPA's vehicle class guidelines. Not only does the Model 3 fall into that category, its MSRP is now above $45,000. The Tesla Model Y's story is much the same, the only difference being the class and MSRP requirements. SUVs as defined by the EPA's vehicle class guidelines can't exceed an MSRP of $60,000.
There is a little bit of a silver lining here for owners and those holding reservations. The eligibility for CVRP is also restricted by order date. So, those of you that have a reservation, or have taken delivery before March 15 are still eligible for the $2,000 rebate. But let's not downplay what this means for the EV manufacturer.
Not only is Tesla a California-based company, but a great deal of its cars are sold there, in part because, until recently, the rebates and deductions for owning one have been so enticing to buyers. Now, a part of that has been chipped away. The brand has also been plagued by controversial decisions, recalls, and reliability issues of late. Tesla would be able to regain eligibility for the Model 3 and Model Y if it lowers the prices for both. As of right now, that change hasn't been made.
