Due to price hikes that took effect March 15, Tesla electric vehicles are no longer eligible for California's Clean Vehicle Rebate Program (CVRP) rebate.
Recently, the state's CVRP updated its battery-powered vehicles qualification list for direct rebates of up to $2,000. Cars priced up to $45,000 and crossovers priced up to $60,000 qualify.
Tesla's Model 3 sedan and Model Y hatchback previously qualified, however their prices have since gone up.
The cheapest version of Model 3 currently costs $46,990, up from $44,990, and is more than $50,000 after taxes and other fees. A base version of Model Y starts at $62,990, excluding taxes, and exceeds $83,000 for a longer-range version with the FSD package and other options, according to a report from Forbes.
CEO Elon Musk in a tweet last month noted that rising prices for materials and shipping were to blame.
The report noted that every electric model, including Tesla’s Model 3, Y, S and X, sold in California still qualifies for a separate $750 rebate administered by the state and utilities.
Musk hinted Tesla will eventually offer cheaper variants using less-expensive lithium iron phosphate batteries, instead of the lithium-ion packs that now go into its vehicles.
