Tesla Boosts Discounts To Tap More US Buyers

  • Tesla, Inc TSLA offered U.S. consumers $7,500 to take delivery of its two cheapest models before year-end.
  • The discount Tesla on new Model 3 sedans and Model Y sport utility vehicles is double what it offered earlier this month, Bloomberg reports.
  • The discount is likely due to the changes to U.S. tax credits effective 2023.
  • Also Read: Tesla Forays Southeast Asia's Largest EV Market Dominated By Chinese Rivals
  • This week the U.S. Treasury Department delayed guidance on new battery content requirements, which may make specific consumers eligible for a $7,500 tax credit early next year.
  • The credit could boost Tesla buyers' morale when Elon Musk enforced a no-discount policy for years.
  • Tesla slashed prices and production in China, and Musk has repeatedly criticized the Federal Reserve for raising interest rates.
  • Tesla has already shared concerns about missing its delivery growth target.
  • Customers have canceled their orders and held off their purchases until the new tax credits kick in, weighing on Tesla demand.
  • Analysts also worried that rising interest rates and Musk's controversial Twitter management could hurt the Tesla brand and sales, Reuters reports.
  • The rare discounts follow a series of price hikes over the past couple of years by the automaker, which blamed supply chain disruption and inflation.
  • Price Action: TSLA shares traded higher by 0.10% at $137.71 in the premarket on the last check Thursday.
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