In its Q3 financial report, Tesla displayed an interesting map of the United States with Model Y starting prices when deducting national and state-level subsidies.
The main nationwide incentive is the $7,500 federal tax credit, for which the Tesla Model Y qualifies. In the case of particular states, another few thousand dollars could be saved.
The manufacturers note that not all consumers are eligible for all subsidies, so let’s treat the numbers as potential figures.
The new entry-level Tesla Model Y RWD starts at an MSRP of $43,990, while the Long Range AWD and Performance versions recently become slightly more affordable, starting at $48,490 and $52,490, respectively.
Tesla assumes that after deducting the $7,500 federal tax credit, the minimum starting point in the US is $36,490. We must note however that Tesla does not include some other obligatory costs, which are $1,640 in total (a $1,390 destination charge and a $250 order fee).
Thanks to generous incentives in some states (like $5,000 in Colorado), the price might be lowered to $31,490 (plus DST/order fee), which makes it a pretty interesting value proposition. Media already reported that, in some cases, Tesla car prices were lower than the average US car cost.
The incentives for EVs are often changing so there is a big chance that the situation will change in 2024 – some states will appear, while others maybe will adjust the amount of financial support.
For your convenience, we attached the table with Tesla Model Y (and Model 3) prices, as of October 6, 2023.
Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
2023 Tesla Model 3 RWD 18-inch | $38,990 | +$1,640 | $7,500 | $33,130 |
2023 Tesla Model 3 RWD 19-inch | $40,490 | +$1,640 | $7,500 | $34,630 |
2023 Tesla Model 3 Long Range AWD 18-inch | $45,990 | +$1,640 | $7,500 | $40,130 |
2023 Tesla Model 3 Long Range AWD 19-inch | $47,490 | +$1,640 | $7,500 | $41,630 |
2023 Tesla Model 3 Perf. LR AWD 20-inch | $50,990 | +$1,640 | $7,500 | $45,130 |
2023 Tesla Model Y RWD 19-inch | $43,990 | +$1,640 | $7,500 | $38,130 |
2023 Tesla Model Y RWD 20-inch | $45,990 | +$1,640 | $7,500 | $40,130 |
2023 Tesla Model Y Long Range AWD 19-inch | $48,490 | +$1,640 | $7,500 | $42,630 |
2023 Tesla Model Y Long Range AWD 20-inch | $50,490 | +$1,640 | $7,500 | $44,630 |
2023 Tesla Model Y Perf. LR AWD 21-inch | $52,490 | +$1,640 | $7,500 | $46,630 |
* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).
Tesla describes the electric vehicle and energy incentives in detail on a special website here.