The Tesla Cybertruck Is Now Cheaper Thanks To The $7,500 Tax Credit

An even cheaper version of the EV is on the way, according to the updated list of EVs that are eligible for the tax credit.

2024 Breakthrough Award Nominee: The Tesla Cybertruck

Photo by: InsideEVs

Iulian Dnistran

By: Iulian Dnistran

Jan 3, 2025 at 5:00am ET

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Some Tesla Cybertruck versions are now eligible for the $7,500 federal tax credit.
The IRS lists the yet-to-be-available single-motor Rear-Wheel Drive trim.
This means the cheapest Cybertruck will finally go into production soon.

The Tesla Cybertruck made a big splash when it debuted as a prototype in late 2019, thanks in no small part to the ambitious pricing strategy. Back then, Tesla CEO Elon Musk said the angular electric pickup would start at just $39,900 for the base version with a single motor, while the top-tier tri-motor version would cost less than $70,000.

That never happened, though. Now, the cheapest Cybertruck is the dual-motor All-Wheel Drive trim, which starts at $79,990, while the tri-motor Cyberbeast is just $10 shy of $100,000. However, as far as the dual-motor version is concerned, it can now be had for roughly 10% less thanks to tax credits.

That’s because the Tesla Cybertruck is now officially eligible for the $7,500 federal tax credit when purchasing. The updated list went online on FuelEconomy.gov on the first day of 2025, and it includes the controversial truck for the first time, as well as other newcomers. We have an updated list with all the EVs and plug-in hybrids that are eligible for a tax credit this year, as well as a list of all the EVs and PHEVs that are no longer eligible for the federal incentive when purchasing.

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The tri-motor Cybertruck is not eligible for the tax credit because it exceeds the $80,000 MSRP cap, but the dual-motor All-Wheel Drive version can benefit from a $7,500 cut if the credit is applied at the point of sale. This means that the truck’s price effectively goes down to $72,490 without destination and taxes. It’s still a far cry from the $49,900 that was advertised back in 2019, but it’s something.

What’s more interesting is that the list of eligible vehicles also includes the single-motor version of the Cybertruck, which is not yet in production and cannot be ordered. The entry-level version was listed on Tesla’s website with a starting price of $60,990, but it was removed in August of last year. We don’t know if the car will carry the same price when it eventually goes on sale, but if it does, its effective price could go down to $53,490 before delivery and taxes.

All the Tesla models that are eligible for the federal tax credit in 2025.

Photo by: InsideEVs

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By comparison, the cheapest retail-oriented Ford F-150 Lightning, the XLT, starts at $62,995 before incentives and taxes. It, too, is eligible for the $7,500 tax credit, but unlike the rear-wheel-drive Cybertruck, the base F-150 Lightning comes with two electric motors and an EPA-estimated range of 240 miles. When deliveries of the Cybertruck began in late 2023, the single-motor version was estimated to deliver 250 miles on a full charge.

To be eligible for the federal $7,500 tax credit when purchasing an EV, the adjusted gross income (AGI) must not exceed $300,000 for married couples filing jointly, $225,000 for heads of household and $150,000 for all other filers.