The discount on the new Model 3 sedan and Model Y sport utility vehicle is double the discount the company was offering earlier this month. This reflects expected changes to the tax credits certain consumers will receive early next year.
Tesla vehicles were expected to get a $3,750 tax credit starting in January as part of changes the Inflation Reduction Act made to federal incentives for electric vehicles. That changed this week when the U.S. Treasury Department announced it was deferring guidance on new battery content requirements. Postponing those restrictions could make certain EV models eligible for his $7,500 full credit early next year.
It’s highly unusual for Tesla to offer such perks, and Elon Musk has implemented a no-discount policy for years. The company also deviated from its chief executive’s argument against spending on traditional advertising by promoting its products on a local TV shopping channel in China last month.
Incentives are the latest sign that Musk’s predictions for this year’s “magnificent” end-of-year aren’t working out. Tesla has cut prices and production in China, and Musk has repeatedly criticized the Federal Reserve for raising interest rates. His sometimes conspiratorial and often politically charged tweets have also offended some consumers.
Tesla shares fell 1% in early trading on Thursday after closing at the lowest in more than two years. Since Musk closed his Twitter Inc. deal in late October, the stock has plummeted 39% for him, and he’s plummeted 61% for the year. Ten analysts have cut their price targets since last week, according to data compiled by Bloomberg.
Musk earlier this month, Tesla perform better than everthe company has already said it expects to fall just short of its target of increasing deliveries by 50% this year. and investors are worried about another mismatch in the quarter.
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