Tesla has sold out the Model Y for the quarter in the US with no more production builds until April, even though we are just halfway through the quarter.

With the significant price drops and the new $7,500 federal tax credit for electric vehicles, Tesla has seen a surge of orders in the US.

Now sources familiar with the matter told Electrek that Tesla has completely run out of production build slots for the quarter for Model Y, which is now Tesla’s highest-volume model.

While Tesla is sold out for new production “build slots,” it will still have some specific configurations in inventory available in some markets.

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The automaker has updated its estimated timeline on the Model Y to “Est. Delivery: Apr – Jun 2023,” which is after having increased the price of the base Model Y back up $1,500 after reducing it by $13,000 early last month.

Meanwhile, new base Model 3 vehicles can still be built and delivered this month with an estimated delivery timeline of “Feb – Mar 2023.” That’s despite Tesla continuing to reduce the price of the Model 3 since the big price drop in early January.

We suspect that Tesla might have issues selling Model 3 vehicles right now because of the impending refresh that is expected to come soon.

But one thing that is helping Tesla sell Model 3 and Model Y vehicles this quarter is the fact that we don’t know if those models will still have access to the full tax credit for vehicles delivered after March.

The new battery sourcing guidance is coming by then and automakers will start to know whether or not they qualify.

Furthermore, Tesla buyers in California also have access to an additional $2,000 incentive on top of the $7,500 federal tax credit. With California being the biggest EV market in the US by far, and Tesla dominating the US EV market, this is going to be a big help for the automaker to keep growing in the state.

Tesla delivered close to 200,000 electric vehicles in California in 2022. It was a record performance for the automaker, but there’s still room to grow with electric vehicles only accounting for 16% of new passenger vehicle sales in California.

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