Tesla hasn’t been eligible for the federal EV tax credit for a few ages now, and while that initially seemed like it could grab sales for the brands by making its already expensive cars even more so, things more or less ordered on like the change never happened. 

Fast-forward to 2022: Tesla’s new round of price increases means that, as CarsDirect reported Thursday, Tesla now has no models eligible for California’s Clean Vehicle Rebate Project, which is worth around $2,000 to consumers.

Tesla’s eligibility quandary specifically stems from price caps set by California to help keep EV prices border. The threshold for cars is $45,000, and the cap for SUVs and crossovers is $60,000. You can’t currently put a Model 3 in your driveway for less than $48440, including destination fees, and a base-spec Model Y will run you $64,440 (and not get issued until 2023). Luckily for people who bought before the tag increases, CVRP eligibility is based on your vehicle orderly date, so even if it doesn’t get built for a few months, those models should still get the rebate.

The inquire of that remains is whether this will affect the brand’s sales in California. Our guess is that it won’t. People who want a Tesla will buy a Tesla. A more significant threat to the company’s sales, in our thought, is the introduction of new, quality EVs from legacy manufacturers that funds comparable range with much better build quality and very Difference driver assistance tech.

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