Tesla creates two-seater Model Y for France business tax loophole

2024.03.07 3 min read

Tesla has launched a two-seater Model Y for business owners in France, helping them qualify for a unique tax loophole.

The automaker launched a two-seater Model Y this morning with a storage capacity of 76 cubic feet, or 2,158 liters.

Credit: Clément Maguet | LinkedIn

While its design offers advantages to business owners due to its size and lack of seating, it was developed to help infiltrate France’s massive fleet of over 6.3 million commercial vehicles, which are mostly powered by diesel engines.

Clément Maguet, a Senior Account Manager at Tesla in France, announced on LinkedIn that the automaker was launching the vehicle to help make a dent in this massive fleet of diesel-powered vehicles, as the design and two-seat layout helps the car qualify for commercial vehicle taxation:

“France currently has a fleet of around 6.3 million commercial vehicles, mostly powered by diesel. Faced with this reality, Tesla has developed a 2-seater Model Y with a storage capacity of 2,158 liters and offers a range of 565 km (351 miles, cycle WLTP), This model is eligible for commercial vehicle taxation. This environmentally friendly and efficient solution offers an additional alternative to professional mobility, whether for the transport of goods or as an emergency vehicle.”

Tesla will be putting the vehicle on display and will be available for purchase exclusively at showrooms across France:

March 4 – March 18: Strasbourg
March 18 – April 1: Lille
April 1 – April 22: Paris
April 22 – May 6: Rennes
May 6 – May 20 – Bordeaux
May 20 – June 3 – Toulouse
June 3 – June 17 – Aix en Provence
June 17 – July 30 – Lyon

Esther Kokkelman first noticed the creation of the vehicle.

France’s tax loophole for business owners requires a utility vehicle to be used in “a professional context” and must be limited to two or three seats in the front and zero in the back.

They can be used for anything from emergency vehicles to rental companies and so on.

The available storage size of 76 cubic feet is larger than the 63 cubic feet that the Mitsubishi Outlander offers, with its rear seats folded. This was ranked by Car and Driver as the compact SUV with the most cargo space, as it was able to fit 27 pieces of carry-on luggage.

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