Tesla discounts Model S by $30,000 and Model X by $41,000 to gain EV tax credits

Tesla Inc.’s latest discounts will newly qualify one of its models for federal subsidies that Elon Musk said years ago the U.S. should scrap.

By dropping the starting price of the Model X to $79,990 — a $41,000 reduction from the start of the year — Tesla made the sport utility vehicle eligible for the federal tax credits revamped by the Inflation Reduction Act, President Joe Biden’s signature climate bill.

Musk in December 2021 called for the Biden administration to get rid of the incentives, citing concerns about government spending and the deficit. At that time, Teslas were no longer eligible for the tax credits because the company had already reached a limit that triggered a gradual phase-out of the benefit.