When Tesla Inc. TSLA Supporter and CEO Elon Musk smoke over the Tax officeor IRS, Short process with the electric vehicle manufacturer, there appears to be room for corrections regarding the EV tax credit qualification standards.

What happened: The IRS has urged the general public and other federal agencies to comment on the standards for various categories of electric vehicles to qualify for the tax credit under the Inflation Reduction Act of 2022, according to a document released in the Federal Register, as reported by Teslarati.

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The written comments are to be sent to the IRS officer Andres Garcia by post or email to an address provided on or before February 28, 2023 to ensure consideration.

Why it matters: Tesla influencers and supporters have complained about the five-seat variant of the company’s best-selling all-electric vehicle Model Y Vehicles that do not qualify for the tax credit, although plug-in hybrids from some older automakers are eligible.

The IRS capped the five-seat Model Y at $55,000, which is unrealistic 17% price reduction to qualify for the tax credit, Guggenheim Analyst Ali Faghri said in a recent note.

Meanwhile, a Tesla influencer took to Twitter to point out that the Model Y was too light to qualify as an SUV for the US tax credit, apparently referring to the five-seater option.

Musk responded by calling it “bizarre” and saying that Tesla is being penalized for making its SUVs too mass-efficient. In response to a related tweet from another influencer, he commented that everything was a mess.

Price promotion: Corresponding benzinega pro data, Tesla closed Tuesday’s session down 12.24% at $108.10 in response to the fourth-quarter supply shortfall.

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