Dual-Motor Tesla Model X Now Eligible for the Full EV Tax Credit, Standard Range Canceled

Hours after the Model 3 "Project Highland" leaked, the well-known EV maker decided to give prospective buyers a bold incentive to buy its premium offerings.

Yes, the Dual Motor 2023 Tesla Model X (previously known as the Long Range model) has a price of $79,990 at the time of writing. That figure qualifies it for the whole $7,500 EV tax credit. Moreover, all the five paint options are free.

Paying the MSRP mentioned above gets buyers the all-electric vehicle in a two-row configuration with a black interior and the tow package. Adding three rows of seats or changing the interior to white or cream still commands a premium. Take that into account before heading onto the brand's configurator.

But even the Level 2 advanced driver-assistance system, FSD Beta, is now $3,000 cheaper! It costs $12,000, and customers can add it after the acquisition, which means they won't have to give up on the federal incentive to enable the software on their vehicle.

Tesla also put its latest internals, dubbed Hardware 4, on the Model X. It has recently activated FSD Beta for these units, but they run an older version known as V11.4.4. Most Hardware 3-equipped models are already on V11.4.7. That may be why the automaker decided to shave off $3,000 of the suite's price.

All this means that a five-seater dual-motor Tesla Model X finished in the striking Ultra Red color, boasting a blacked-out interior and riding on 20-inch Cyberstream wheels, ends up costing $72,490. Add the order and destination fees amounting to $1,640, and the pre-tax cost is $74,130 without Enhanced Autopilot or FSD Beta. And, yes, the one-year premium connectivity trial is still included.

Ordering a Model X now means customers could take delivery in as little as a fortnight or a month tops, according to the estimates available on the vehicle's dedicated webpage.

To qualify for the EV tax credit, Americans need to have an income of:

• $300,000 for married couples filing jointly;
• $225,000 for heads of households;
• $150,000 for all other filers.

Don't forget that you can use the adjusted gross income (AGI) from the year you take delivery of the vehicle or the year before, whichever is less.

Bear in mind, however, that the Department of Energy (DoE) has not updated its database of vehicles eligible for the EV tax credit to include the Model X when writing. Only the EV maker confirmed that its SUV qualifies for this federal perk.

One tumultuous year

Two weeks ago, Tesla introduced the Model X Standard Range. It didn't change the high-voltage energy storage unit with a smaller one, but it used a software lock to drop the range from 348 miles to 269 miles. That version is now gone. The all-wheel-drive SUV, costing $79,990, makes use of the entire battery pack, so prospective customers do not have to worry about having less range.

The tri-motor Model X Plaid has also benefitted from a hefty discount – its MSRP sits at $89,990 when writing. It used to have a starting price of $108,490. That's quite the drop!

Back in September 2022, a Dual Motor Tesla Model X had an MSRP of $120,990, while the Plaid was retailing starting from $138,990. Those were some absurd figure, but people still spent the money believing their new EVs would hold their value.

In under 12 months, the dual-motor SUV got $41,000 cheaper, while the tri-motor unit shaved off $49,000 of its starting price. That's guaranteed to upset some buyers because their all-electric SUVs' secondary market value dropped yet again. We warned our readers about the automaker's pricing strategy in the summer of last year.

Tesla also dropped the MSRPs for the Model S Long Range (was $88,490, now $74,990) and the Model S Plaid (was $108,490, now is $89,990).

Finally, we can't help but wonder - are these new discounts paving the way forward for a Model X and Model S refresh? The playbook looks eerily similar to what happened before the all-new Model 3 was officially introduced. We'll let you be the judge of that.