As everyone was watching the ball drop and celebrating under a fireworks-filled sky when the clock ticked over into 2025, the IRS was unveiling its newly revamped list of vehicles eligible for the $7,500 federal EV tax incentive. Surprise of all surprises, the controversial Tesla Cybertruck made the cut this year.
Tesla recently lowered the price of the standard all-wheel drive model to $79,900, conveniently $100 under the max price for incentive eligibility, down from $99,900 just last summer. With some extra Biden Bucks on the hood, the entry-level Cybertruck will now cost you a measly $72,490 before the $1,995 destination fee, $250 order fee, and taxes.
When the Cybertruck first made its debut in 2019, company CEO Elon Musk stood on stage and told the world that it would start at $39,900. All these years later and the reality is that you’ll pay about double that to purchase your stainless steel doorstop on wheels.
According to fueleconomy.gov, the single-motor version of the Cybertruck is also eligible for federal incentives, despite Tesla having scrubbed all mention of that truck from its website. The most affordable version of the truck was available to order for a time at $60,990, but was removed last summer as the company continued having production ramp up issues. If Tesla does re-introduce that truck at the same price point it was in August, it would also qualify for the incentive cash, dropping its price to just $53,490 before tax, title, and fees.
Now that the company seems to have figured out how to produce the trucks quickly, it can’t seem to find a way to sell them, and stock keeps piling up around the country. Perhaps the introduction of the cheaper single-motor truck combined with its eligibility for tax incentives will spur sales. Or maybe it being kind of a bad truck will keep unit deliveries low.
Of course, any sales bumps Tesla get from the Cybertruck entering federal tax credit status will likely be short lived. Incoming President Trump, who Musk supported to the tune of $259 million in the presidential campaign, and his transition team have vowed to kill the Biden EV tax credit. Tesla itself has allegedly pledged support for ending the subsidy.
