Last week, Tesla slashed prices on its lineup by up to 20%. The changes mean some models now qualify for an additional $7.5k federal EV tax credit through mid-March.
A Tesla spokesperson attributed the drop to “a partial normalization of cost inflation,” and comes as Tesla faces an increasingly competitive market, a challenging demand environment, and a 65% stock dip in 2022.
Not everyone was happy about the cuts — some Tesla customers felt duped after buying one without knowing a discount would go live soon after. But for prospective customers, a discounted Tesla is exciting news.
How long Tesla’s discounts will last, however, remains to be seen. Lower prices will drive demand, though profit margins will take a hit.
Big picture: EV’s surpassed 10% of vehicles sold globally in 2022 — ~7.8m cars — up 68% from 2021. Expect Tesla to work hard to maintain market share as the world goes electric.