Tesla Boosts Discounts To Tap More US Buyers

Tesla, Inc (NASDAQ: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.
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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.

Benzinga