Tesla Cybertruck Now Eligible For Federal EV Tax Credit
The Tesla Cybertruck Dual Motor model is now eligible for the $7,500 federal tax credit for electric vehicles in the United States.
When Tesla launched the Cybertruck in late 2023, its pricing exceeded initial expectations. The Dual Motor model was priced just below the $80,000 threshold for electric SUVs and trucks to qualify for the tax credit. Initially, Tesla prioritized deliveries of the higher-priced Foundation Series, which starts at $20,000 more, leaving those buyers without access to the credit.
Tesla began delivering $80,000 Dual Motor Cybertrucks in October 2024. Despite meeting the price criteria, these vehicles were not immediately eligible for the tax credit due to unclear reasons, possibly related to sourcing and material requirements set by the U.S. government.
The Cybertruck is unique among Tesla’s vehicles for its in-house manufactured battery cells, which may have required additional approval.
While the tax credit may help attract buyers, its impact may be limited. Income restrictions for eligibility cap single tax filers at $150,000 and joint filers at $300,000, potentially excluding many buyers of a luxury vehicle like the Cybertruck.
The Cybertruck’s newfound eligibility coincides with political uncertainty surrounding the EV tax credit’s future. President-elect Donald Trump and Tesla CEO Elon Musk have both expressed a desire to eliminate the incentive.
Single Motor Cybertrucks were priced at $60,990 when the truck was launched in 2023, but it's unclear if those models will reach the market before the tax credit ends—if it ends. Removing the tax credit would require congressional approval, leaving questions about how quickly such a move could happen and whether a phase-out period would apply.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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