Tesla may raise the price of its best-selling Model Y in the United States “in the coming days” as demand surges ahead of the September 30 expiration of the federal $7,500 EV tax credit, a senior executive said on Monday.
“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see,” Raj Jegannathan, Tesla’s head of sales operations, wrote on X.
The comment follows mounting reports of dwindling Model Y inventory nationwide where Tesla shareholder and content creator Sawyer Merritt reported that inventory for the new Model Y “is running very low across the U.S. Some areas”
Merritt added on Monday that in Austin, Texas, Tesla‘s webiste is “showing zero new Model Y inventory within a 200 mile radius as people rush to take advantage of the $7,500 federal EV credit before it expires on September 30th.”
The potential price increase comes amid an industry-wide sales push across the US EV industry as the brands look to lock in customer orders before the incentive deadline.
Late last week, the Internal Revenue Service (IRS) issued updated guidance clarifying how consumers and businesses can still secure eligibility for federal electric-vehicle tax credits set to expire at the end of September.
In a fact sheet updating frequently asked questions on the “One, Big, Beautiful Bill Act” (OBBBA), the IRS said buyers will be treated as having “acquired” a qualifying vehicle if they enter into a binding written contract and make a payment — such as a deposit or trade-in — before September 30.
That means the $7,500 new clean vehicle credit under section 30D, the $4,000 previously owned clean vehicle credit under section 25E, and the $7,500 commercial EV credit under section 45W can still be secured by contract, even if delivery happens after the deadline.
Separately, in response to an X post asking why Tesla does not list its $99 per month Full Self-Driving (FSD) subscription option across all US vehicle order configurator pages, Jegannathan said: “Yes, will optimize the design to offer both full purchase, subscriptions (with free trial) on the configurator.”
Last month, Reuters reported that the company promoted the longtime engineering executive to lead its sales operations.
Jegannathan has spent nearly 13 years at Tesla in senior infrastructure and security roles, most recently serving as Vice President of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, according to his LinkedIn profile.
While he has no traditional sales experience, Reuters reported that he has grown closer to Chief Executive Elon Musk in recent months.
The outlet added it could not determine whether his appointment was permanent or interim.
His prior responsibilities included oversight of Tesla’s internal platforms, global cloud infrastructure, cybersecurity operations, and high-performance computing systems used in Autopilot development.
Last week, Tesla also raised the price of the Cybertruck’s most expensive trim — the Cyberbeast — while starting to include the “Luxe Package” as standard.
The Cyberbeast, previously priced at $99,990, now costs $114,990 — a price that includes the Supervised Full Self-Driving (FSD), which can be purchased for $8,000 in the US.
It also includes free lifetime Supercharging and free Premium Connectivity, which offers satellite-view maps, music streaming, among other features, and is usually priced at $99 per year.
The package also features Premium Service for four years, with wheel and tire protection, windshield protection and recommended maintenance.
