While the Tesla Cybertruck has a lower percentage of parts made in the US or Canada compared to other American pickups like the Honda Ridgeline, it still qualifies for the federal tax credit. This is because its 4680 battery pack cells are produced and assembled in Texas.
Timing for Tax Credit Eligibility
However, there was a waiting period before it could receive the $7,500 discount from the IRS, which manages the new EV tax credit. Tesla took steps to lower the Cybertruck’s price to fall below the tax credit limit around four months ago. This was done when they began configuring non-Foundation Series units, which made the pickup $20,000 less expensive.
Pricing Details
In its first Foundation Series edition, the dual-motor AWD trim was priced near $100,000. Similarly, the 2026 Model Y Launch Series edition is now priced over $60,000, which includes the Full Self-Driving (FSD) feature and exclusive badging as part of a package deal. In contrast, the starting price for non-Foundation Series models is $79,990, which allows the Cybertruck to qualify for the federal tax credit for electric SUVs and pickups under the $80,000 threshold.
Waiting Period for Tax Credit
Despite this, a full quarter needed to pass before the Cybertruck could take advantage of the tax credit as a privately owned vehicle during the next quarter. The IRS had already added it to their list of qualifying vehicles at the beginning of the year, alongside a more affordable RWD version expected to launch this year. However, Tesla was only allowed to apply the tax credit starting from the first business day of February.
Now, the Cybertruck’s price is much more reasonable than when it first launched at $99,990. After applying the $1,000 referral credit and military discount, and before any state incentives, the starting price is just above $70,000. This brings it very close to the average price of pickups sold in the US, whether electric or gas. However, with the Trump administration looking to eliminate new EV subsidies, there may be a limited time for the Cybertruck tax credit to remain in effect.
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