"Tesla's Model Y Joins the List of Vehicles Losing Full $7500 Tax Credit"

Tesla has confirmed that the Model Y is "likely" to see reductions in its federal tax credits, similar to the Model 3 RWD and Model 3 Long Range, which will lose the full $7,500 tax credit for electric vehicles starting January 1st. The reduction in tax credits is due to increased requirements for electric vehicles to have fewer parts, particularly batteries, from China. Tesla is working to produce more batteries locally in the US to regain access to the full tax credit, but it is unclear when this will happen.