Cybertruck Price Drops as EV Tax Credit Kicks In

Tesla confirmed that the Cybertruck now qualifies for the $7,500 federal EV tax credit. This lowers the starting price to $72,490.

The company had expected this approval but hadn’t confirmed it until now. The tax credit now applies to nine Tesla models, including:

• Cybertruck Dual Motor
• Cybertruck Single Motor
• Model 3 Long Range AWD
• Model 3 Long Range RWD
• Model 3 Performance
• Model X AWD
• Model Y Long Range AWD
• Model Y Long Range RWD
• Model Y Performance

The tax credit’s future is uncertain. The Trump administration is considering cutting it. Some believe this would hurt EV companies that depend on the discount to sell cars.

Tesla, however, may not be affected much. CEO Elon Musk and analysts say Tesla’s scale and technology give it an edge. Competitors rely more on the tax credit to keep prices attractive.

Analyst Dan Ives said that even if Tesla loses the tax credit, it can still compete. He believes traditional automakers will struggle without it.

“In line with our thoughts over the past few weeks Tesla has a scale and scope that is unmatched and while losing the EV tax credit could also hurt some demand on the margins in the US, this will enable Tesla to further fend off competition from Detroit as pricing/scale/scope is an apples to oranges when compared to the rest of the auto industry once the EV tax credit disappears.”

For now, the discount is still available. But it may not last.