Due to changes in American tax credits, Tesla increased the Model Y price in the United States. According to its website, the Model Y Long Range version increased by roughly 2% and the Performance version by 2.7%. Tesla made the changes just three weeks after the EV company decreased pricing on some of the Model Ys by about 20%. The price reductions implemented were to boost lagging demand and enable Tesla to take advantage of the tax credits. That's all changed, but the total tax credits will be available until March.
The Treasury Department updated its definitions of what constitutes a car on Friday to make more EVs, including SUVs built by Tesla, Ford, and General Motors, eligible for the full $7,500 tax credit. The shift happened after lobbyists pressured the government to alter the definitions of EVs so more expensive cars would be eligible for the maximum credit. Last week, Elon Musk met with senior government advisors to talk about the electric market industry and the future of electrification.
According to the law passed last year, new EVs can only be priced up to $55,000, while pickup trucks, SUVs, and vans up to $80,000 will qualify for EV tax credits. Tesla and other automakers objected to the restriction. Ford reduced the price of the Mustang Mach-E in reaction to Tesla's price reductions, partly to qualify for the tax credit and somewhat to excite consumer interest.
Ford's Mustang Mach-E
The Inflation Reduction Act's objective is to push electric vehicle sales as part of a drive to reduce emissions of the glasshouse gases that cause global warming. But it needs to be clarified whether customers can take advantage of the entire credit due to a confusing web of criteria, including the manufacturing location of the batteries and vehicles.
Consumer-facing fuel efficiency labelling standards will be used to identify vehicles under the modified rule rather than a more complex formula created by the Environmental Protection Agency, making it easier for consumers to understand which cars qualify for the credit.
Musk Reveals FSD V11 Release
The FSD Beta V11 release from Tesla is quite significant. It is the first iteration of the advanced driver-assist system from the manufacturer of electric vehicles to use a single software stack for interstate and city driving. Expectations are high for the upgrade because of its significant advancements.
However, the widespread release of the FSD Beta V11 has been delayed, much like most critical things at Tesla, including the Cybertruck and the Tesla Semi. The fact that Tesla began the initial delivery of FSD Beta V11 back in November with a goal of widespread deployment before Thanksgiving 2022 is rather intriguing.
The wide release of FSD Beta V11 by Thanksgiving 2022 did not occur, but leaked release notes did confirm the use of a single-stack system. Soon after Elon Musk gave V11 the "two weeks" treatment in December, the CEO indicated that FSD Beta V11.3 should be available for widespread release in around two weeks. Then, Musk emphasized that V11.3 would have many important enhancements.
As of this writing, Tesla has yet to start a widespread rollout of FSD Beta V11.3. And Elon Musk just explained the significant delays in the overall distribution of V11 in a tweet. Musk acknowledged that the development of V11 overall had been more difficult than anticipated, including several important updates to the FSD Beta system. But Musk did add that he still hopes to release V11.3 before the end of the week.
There is much excitement surrounding the widespread release of FSD Beta V11.3. This is particularly true for the company's FSD Beta testers, who have been impatiently awaiting the eagerly awaited update.