Tesla-Loving California Facing Massive Price Hikes

TheTesla Model 3is an incredibly popular car. It could be argued that the small EV is the face of entry-level luxury EVs. Then again, the same thing could be said about theTesla Model Y. And it's hard to think of another place where these two cars are more popular than the state of California. We've seen it ourselves, with just about every fifth car that rolls by is one of the two T-branded EVs.

Now, that's turned from a benefit to a problem for Tesla. Both the Model 3 and Y are no longer eligible for California's biggest EV rebate. Both have been excluded from the California Clean Vehicle Rebate Project. This comes hot on the heels of aprice hike for the Model Yand Model 3.

The reason given for the exclusion is simple. Vehicles on the CVRP list have a maximum MSRP of $45,000 for cars, defined by the EPA's vehicle class guidelines. Not only does the Model 3 fall into that category, its MSRP is now above $45,000. The Tesla Model Y's story is much the same, the only difference being the class and MSRP requirements. SUVs as defined by the EPA's vehicle class guidelines can't exceed an MSRP of $60,000.

There is a little bit of a silver lining here for owners and those holding reservations. The eligibility for CVRP is also restricted by order date. So, those of you that have a reservation, or have taken delivery before March 15 are still eligible for the $2,000 rebate. But let's not downplay what this means for the EV manufacturer.