![]() Tesla expansion: Tesla plans $700 million in growth at Austin facility, documents show But those sales numbers fell short of Musk's goal to grow sales by 50% every year.Įlon Musk: Tesla, Boring Company just the start of Musk's influence in Austin, analysts say The company will issue its quarterly earnings report later this month, but has already announced that it sold a record 1.3 million vehicles last year. The price cuts follow lower-than-expected delivery numbers for 2022. "They're no longer the only game in town, it's a softer macro, and also they needed to cut prices to qualify Model Y for the tax credit." They need to cut prices amid softer demand," Ives said. "It was the right medicine at the right time. Why Tesla dropped pricesĭan Ives, an industry analyst with Wedbush Securities, said the price cuts were a strategic move by Musk and Tesla, as the company has been seeing less demand for its products. Vans, SUVs or pickups, which are defined by weight, must have a suggested retail price below $80,000, while smaller vehicles like sedans must have a sticker price of $55,000 or less. ![]() Under the legislation, consumers can qualify for as much as a $7,500 tax credit on new EVs and plug-in hybrids, but the vehicles have to meet certain criteria: It must weigh less than 14,000 pounds, must be assembled in North America, and must use a battery with at least 7-kilowatt hours of capacity. Musk already took to Twitter to say it was "Messed up!" earlier this month. The vehicle did not reach the weight minimum to be considered an SUV by the government standards, and as of last week cost too much to qualify as a smaller vehicle. Tesla's popular five-seater Model Y, which the company considers an SUV, previously did not qualify under federal rebate guidelines with a previous list price of $65,990. The most expensive vehicles on the market dropped as much as $21,000, including the company’s Model S Plaid, which had a 15% price drop. The lowest-priced Model 3 dropped to $43,990 from $46,990, a 6.4% drop. The Tesla website shows the Model Y with the largest drop in sticker price, from $65,990 to $52,990, a 20% decrease. Tesla did not say how long the lower prices would remain in place. Truck time machine: Ford adds vintage pickup truck images to public website for free downloading Tesla Model Y sees 20% decrease in price Tesla: Here's why its stock is on track for its worst year and why it could recover in 2023 Tesla also said on its website that some customers are now eligible for the tax credit on cars delivered through March. buyers, the drop means that certain Model 3 sedans and Model Y SUVs are now below the cap needed to qualify for electric vehicle tax credits under changes set in motion by the federal Inflation Reduction Act, which was signed into law last year. Tesla made similar reductions in Europe and dropped prices on its cars in China last week.įor U.S. The price cuts apply to vehicles sold in the United States and range from 6% to 20% reductions for Model 3 and Model Y SUVs and some higher-end models. It is $52,990.īuying a Tesla just got a lot cheaper, after the Austin-based electric automaker slashed prices by as much as 20% likely in an effort to increase demand. Jay Janner and Nate Chute, Austin American-StatesmanĬorrections & Clarifications: An earlier version of this story misstated the new price of the Tesla Model Y.
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