After President Joe Biden's administration introduced measures to make more crossover SUVs qualify for the newly revamped electric vehicle tax credit, $Tesla (TSLA.US)$ has raised prices for its Model Y SUVs.

According to the company website, Tesla increased the Model Y Long Range price to $54,990 and the Model Y Performance to $57,990.  

The Treasury Department has ruled that crossovers like the Model Y would qualify for electric vehicle tax credits as long as they were priced below $80,000. The ceiling for cars, sedans, and wagons is lower at $55,000, reports Reuters.

Now, consumers can take advantage of a lucrative $7,500 consumer tax credit by broadening the definition of a sport-utility vehicle.

In January, Tesla cut prices globally in response to signs of slowing demand. On Friday, the EV maker cut the cost of its vehicles in South Korea for the second straight month.

According to Reuters, last month Tesla CEO Elon Musk said that vehicle orders were double the company's output after the first round of price cuts.

He said strong demand had prompted the company to make its first small price increase to the Model Y.

Last month, Tesla reported Q4 revenue of $24.32 billion, up 37% year-over-year. The revenue total beat a Street estimate of $24.16 billion.

Tesla remains committed to a target production goal of 50% annual growth. The company expects to stay ahead of the 50% figure in 2023 with 1.8 million vehicles.