<span class="HighlightShare-hidden"></span><div id="RegularArticle-RelatedQuotes"><div><div><p>In this article</p></div><ul><li>TSLA<span class="AddToWatchlistButton-watchlistContainer" id="RegularArticle-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"></span></span></li><li>GM<span class="AddToWatchlistButton-watchlistContainer" id="RegularArticle-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"></span></span></li></ul></div><div><span class="CreateFreeAccountButton-buttonText"><span>Follow your favorite stocks</span><span class="CreateFreeAccountButton-buttonTextBold">CREATE FREE ACCOUNT</span></span></div></div><div id="ArticleBody-InlineImage-107074660"><div><div><div></div></div><div><div>A Tesla Model Y on display inside a Tesla store at the Westfield Culver City shopping mall in Culver City, California, U.S., on Thursday, April 14, 2022.</div><div>Bing Guan | Bloomberg | Getty Images</div></div></div></div><div><p>DETROIT – The U.S. Treasury said Friday it is changing its definition of an &#34;SUV&#34; to make more electric vehicles from Tesla, <span class="QuoteInBody-quoteNameContainer" id="RegularArticle-QuoteInBody-2">General Motors<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"></span></span></span></span> and other automakers eligible for up to $7,500 federal tax credits at higher prices.</p><p>The decision follows <span class="QuoteInBody-quoteNameContainer" id="RegularArticle-QuoteInBody-3">Tesla<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"></span></span></span></span> CEO Elon Musk publicly criticizing the former standards as well as automakers such as GM and <span class="QuoteInBody-quoteNameContainer" id="RegularArticle-QuoteInBody-4">Ford Motor<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"></span></span></span></span> lobbying to change the guidelines ahead of final rules being announced next month.</p><div></div><p>The change raises the retail price cap to $80,000 from $55,000 for vehicles such as the Tesla Model Y, Cadillac Lyriq, Ford Mustang Mach-E and Volkswagen's ID.4. Previously some or all models of these vehicles did not qualify because they didn't weigh enough to be considered an SUV by the Treasury's standards.</p><span></span><p>The credits are part of the Biden administration's $437 billion Inflation Reduction Act, which was approved in August. Under the bill, SUVs can be priced at up to $80,000 to qualify for EV tax credits, while cars, sedans and wagons have to be priced at or under $55,000.</p><p>It's unclear how the decision will impact up to 20% pricing cuts announced by Tesla last month that made the Model Y eligible for the credits. Tesla did not immediately respond for comment.</p><p>GM, in an emailed statement, thanked the Treasury and hailed the changes: &#34;The alignment on classification will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers.&#34;</p><p>The Alliance for Automotive Innovation, a lobbying group for most automakers operating in the U.S., also commended the decision.</p><p><em>–CNBC's Chelsey Cox contributed to this article.</em></p></div><div id="ArticleBody-MobileAdhesion"></div>

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<p>The EV tax credit change follows Tesla CEO Elon Musk publicly criticizing the former standards as well as GM and Ford lobbying to adjust the guidelines.</p>

Biden administration expands EV tax credits in boost for Tesla, Cadillac, others