ROCKFORD, Ill. (WTVO) — Tesla is raising prices on its Model Y vehicle.

The price is going up some 2% to just shy of $55,000. The move comes three weeks after Tesla cut prices nearly 20% on some version of the Model Y due to sagging demand.

To entice buyers, the car company successfully lobbied the Biden administration to allow the Model Y to be eligible for a $7,500 electric vehicle tax under the “Inflation Reduction Act.”