For the second time this month, Tesla is adjusting its prices in a bid to maximize consumer demand amid an increasingly competitive electric vehicle market. 

Earlier this month, the company cut the price of the Model Y by $13,000 to $52,99o. Now it's adding back around $1,500 to the price tag, while the Model 3 is actually getting cheaper. 

The changes came one day after the IRS released a new standard for what kind of electric vehicles qualify for a federal tax benefit under the Inflation Reduction Act. In short, some pricier electric vehicles now qualify as SUVs, which makes them eligible for a bigger credit. 

"With Friday's move by the Biden Administration to change the definition of EVs classified under the $80k SUV cap, this now gives Tesla another lever with the Model Y," wrote Dan Ives, analyst for Wedbush Securities, in a daily research note. 

The Model Y had been bumping against the $55,000 price threshold for non-SUVs to receive the tax benefit. Now that it's considered an SUV, it could cost up to $80,000 before losing the benefit.  

"Overall, this was a smart move by the Beltway as with GM (LYRIQ), Tesla, and others heading down this path many EV crossovers are no longer bumping against the $55k threshold heading into a pivotal 2023 for the EV industry," Ives added. 

Access to tax benefits is just one concern for Tesla. Keeping up demand amid economic uncertainty and growing competition is another, which may explain the company's decision to take $500 off the price of the Model 3.