If you had been ready till after New Year to choose up a Tesla Model Y in hopes it’d qualify you for the brand new federal tax credit score, you may be in for a disappointment. The IRS launched a 2023 record of autos that qualify for the brand new $7,500 incentive, and whereas Tesla’s standard hatchback is on it, the commonest five-seater variations received’t be eligible.

Without SUV standing, the Model Y’s qualifying value ceiling could be $55,000, the identical class that features a compact hatchback just like the Chevy Bolt. And for the reason that Model Y Long Range begins at $65,990, it’s not presently eligible for the $7,500 credit score.

Tesla CEO Elon Musk tweeted that the disqualification is “messed up” in a reply to a Tesla fan comparing a qualifying plug-in hybrid Jeep to the Model Y. Another tweet that Musk replied to factors out that Model Y is particularly “238 pounds too light” to be thought-about an SUV. “Penalized for making our SUV too mass-efficient? That is bizarre,” Musk wrote.

The seven-seater model of the Model Y, nonetheless, remains to be eligible regardless of its weight being beneath 6,000 kilos. It has fold-flat third-row seating, which is one other federal SUV qualifier that the five-seater doesn’t have. Confusingly, no Model Y has a ground clearance that’s 20 centimeters or higher, amongst different federal specs that might outline the car as an SUV. Perhaps a lift from the manufacturing facility might repair that, or it might want energetic air suspension just like the Model X.

As an SUV, the seven-seater Model Y jumps to the relevant MSRP restrict of $85,000, which makes these variations eligible for the tax incentive. The seven-seat choice provides $3,000 to the Model Y Long Range’s value however notably can’t presently be configured with Model Y Performance trims — making these ineligible as properly.

There are different curiosities that fall on the IRS record of unpolluted autos, like how the Ford Mustang Mach-E isn’t thought-about to be an SUV whereas the Ford Escape Plug-in hybrid is. The Escape has a shorter wheelbase and is lighter than the Mach-E, too.

It would appear that Tesla and different producers must make some modifications to fall consistent with the brand new clear car {qualifications}. Tesla, particularly, may must make some design modifications to its Model Y. It may be onerous to get it over 6,000 kilos, nevertheless it might simply cut back the worth of the automobile.