This month, Tesla is reducing the cost of its Model 3 and Model Y Electric Vehicles (EVs) in the United States to a discounted rate of $7,500 – an amount that customers will be able to receive as part of their full federal tax credit next year.
Tesla’s customer website states that for all Model 3 and Model Y vehicles purchased before the end of 2020, purchasers are eligible to receive a $7,500 credit plus complimentary supercharging up to 10,000 miles (16,093 kilometers).
Tesla has surpassed the $3,750 credit they were offering on Model 3 and Model Y vehicles delivered before year-end. This action is in response to worries of decreasing demand due to expiring electric vehicle tax incentives and economic slowdowns.
Just days after the US Treasury Department postponed restrictions on EV incentives until March, Tesla and other domestically-manufactured EVs are likely to qualify for a complete $7,500 incentive commencing January 1st, 2023. This comes as great news due to this latest discount.
By Reuters, numerous consumers have put a stop to their acquisitions and canceled any pending orders in anticipation of the tax credits instated by the Inflation Reduction Act. To be eligible for these benefits, they must receive their cars on or following January 1st.
The Tesla demand has been greatly impacted as a result of this, resulting in more cancellations since the company does not permit orders to be postponed for arrival in January. To sweeten the deal, Tesla is even providing $5,000 credit on Model 3 and Model Y vehicles that are delivered by year-end across Canada. Additionally, China will receive an added discount of 6,000 yuan ($860) for some models till 2022’s end.
Despite Elon Musk’s recent statement that Tesla does not offer discounts, these offers are a rare exception for the electric car company. Over the past few years, Tesla has raised prices citing supply chain issues and inflation as reasons behind it. It appears they are now attempting to promote deliveries before the end of this year.
Despite Tesla’s proclamation in October that it had missed its vehicle delivery target for the year and produced revenue below Wall Street estimates, its decision to institute price cuts appears to have not been well received by analysts. Many claims that this was a miscalculated move which does not properly assuage investor worries or bolster confidence.
Source: Tesla via Reuters