Discounts, or price adjustments as Tesla (TSLA) refers to them, will now be $7,500 for all Model 3 and Model Y vehicles delivered in March.
We recently reported that Tesla has had unusually low demand, particularly in the United States.
Years have passed since Tesla reached the 200,000-delivery threshold in the United States, at which point it was no longer eligible for the federal tax credit for electric vehicles in the United States. This up to $7,500 incentive has been temporarily suspended, but Tesla buyers should be able to use it again soon.
Given that the programme is set to begin in 2023, interested parties must take delivery of their vehicles on or after January 1 in order to be eligible for the incentive.
As a result, prospective Tesla buyers in the United States are being advised to delay their purchase until after the new year. We reported last month that this factor contributed to an increase in cancellations because Tesla does not allow customers to postpone orders in order to receive them the following month.
In an effort to address this situation, Tesla has recently begun offering a $3,750 discount to buyers. This amount piqued my interest because it represents a 50% savings on the standard $7,500 tax credit.
For December deliveries, the manufacturer later added free 10,000 supercharging miles.
Electrek has learned that Tesla has authorised staff to increase the discount to $7,500 for Model 3 and Model Y vehicles with delivery dates before the end of the month, according to people familiar with the situation.
Tesla, as Elon Musk famously stated, does not offer discounts. The car company, on the other hand, refers to this as a price reduction.
As we reported earlier today, Tesla has announced a hiring freeze and another round of layoffs in response to growing investor anxiety following a more than 60% drop in stock price this year.
ED’s analysis
We expected things to get tougher as the month progressed, but Tesla appears to be having some serious issues this month.
The amount of the discount and the timing of the change are both intriguing.
We pointed out that Tesla’s $3,500 offer represented only half of the total discount, or what customers would receive if the EV’s battery material requirements were not met.
We interpreted this to mean that Tesla either did not expect to receive the full discount or believed that offering customers 50% of the discount would entice them to make an immediate purchase.
Connect With Us On Social Media [ Facebook | Instagram | Twitter | LinkedIn ] To Get Real-Time Updates On The Market. Entrepreneurs Diaries Is Now Available On Telegram. Join Our Telegram Channel To Get Instant Updates.
