Tesla Cybertruck Eligible For $7,500 Tax Credit

The Tesla Cybertruck is now eligible for the $7,500 tax credit as of Jan. 1, which should boost demand for expensive EV.

The dual-motor Tesla (TSLA) Cybertruck, which starts at $79,990, now qualifies for the federal IRA tax credits, according to the fueleconomy.gov. The tri-motor Cyberbeast, which starts at $99,990, is not eligible.

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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 on line, but it still didn’t qualify. It’s unclear why, but 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, cutting the 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.

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 is expected to report fourth-quarter deliveries. They should be a new quarterly record of 500,000 or so. Tesla needs 514,925 for 2024 deliveries to top 2023’s total of 1.808 million. Tesla will lose its BEV crown to rival BYD (BYDDF) in Q4.

EV Tax Credits: $7,500 Is Up For Grabs. Here’s How To Get It. 

Tesla Stock

Tesla stock retreated 3.25% to 403.84 on Tuesday, its fourth straight loss. Early on, TSLA stock rebounded from its 21-day moving average, but ultimately closed below that key short-term level for the first time since Oct 24.

Please follow Ed Carson on  Threads at @edcarson1971 and X/Twitter at @IBD_ECarson  for stock market updates and more.

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