Tesla’s all-electric pickup Cybertruck officially qualifies for federal tax credits of up to $7,500 under the Inflation Reduction Act, at least for the two variants launched this year.
Eligible Cybertruck variants
The United States Department of Energy revealed that two out of three Cybertruck variant models can access the $7,500 federal tax credits as of December 7, 2023.
The eligible variants include the all-wheel drive (AWD) and the top-tier tri-motor Cyberbeast.
Tesla has yet to launch the base model rear-wheel drive (RWD) Cybertruck in 2025. That said, it is unsurprising that the current list of eligible electric vehicles has excluded the entry-level Cybertruck.
Cybertruck pricing
For context, the IRA’s federal tax credits of up to $7,400 are only applicable for all-electric pickup trucks with a maximum price of $80,000.
Tesla indicated on its official website that the Cyberbeast will start at $99,990, while the AWD variant’s estimated MSRP is $79,990. However, its deliveries will only commence next year.
Therefore, InsideEVs suggests that Cybertruck may not access any tax credit this year. For context, here is the Cybertruck’s pricing:
- RWD: $60,990 (in 2025)
- AWD: $79,990 (in 2024)
- Cyberbeast: $99,990 (in late 2023)
It is also interesting to note that the Cyberbeast, like the Tesla Model X Plaid, exceeded the $80,000 price cap. However, the latter did not make the IRS list.
Nonetheless, this update may only be effective for a few more weeks as the US government will revise the tax credit system in January 2024 to introduce new rules for battery materials origin in January.
Significance
Qualifying for the $7,500 electric vehicle tax credit is crucial for the Cybertruck, given that its pricing has been a prevailing discussion since the Delivery Event on November 30.
Numerous industry experts noted that the official pricing of the highly awaited pickup significantly increased from Tesla’s initial announcement, Benzinga reported. That said, it can potentially impede customer demand for the Cybertruck until the pricing declines.
The IRA’s federal tax credit can substantially address these pricing concerns. It will make the Tesla Cybertruck more affordable for a wide range of customers with up to $7,500 reduction.
Tesla’s plans to begin deliveries in 2024 and the exclusion of the base model RWD configuration from the eligible list may influence the overall sales this year. In addition, the imminent tax credit system changes may also affect the pickup’s full tax credit eligibility in 2024.
