- Tesla buyers can get $7,500 off on a Model 3 and Model Y through the end of the year.
- Discounts on Teslas this month come after years of price hikes.
- Tesla is facing a series of setbacks as it offers hefty discounts on its most popular cars.
Tesla is offering a hefty $7,500 discount on its popular Model 3 and Model Y through the end of the year, in addition to 10,000 miles of free Supercharging.
The move is rare for Tesla, which typically does not mark down its vehicles, and represents a doubling of the $3,750 credit it offered on the same vehicles earlier this month.
The new discount comes just a few days after the US Treasury Department pushed back the effective date of tighter restrictions for EV tax credits until March of next year. That’s bad news for companies like Tesla, which lost eligibility for the $7,500 tax credit two years ago.
Customers waiting for new EV incentives to kick in next year, potentially including Teslas again, have delayed purchases, weighing on Tesla demand this quarter.
Adding to the company’s woes, Tesla’s stock price has been in free fall as CEO Elon Musk stumbles through a series of controversies at Twitter, which he took over earlier this year.
Analysts also worry that Musk’s antics at Twitter will have significant damage on Tesla’s brand image. Some people have tweeted screenshots of their canceled Tesla orders after Musk reinstated the accounts of several controversial right-wing commentators.
Tesla’s offer of a $7,500 credit for Model 3 and Model Y buyers is an about-face for the company, which instituted a series of price hikes on its vehicles over the past few years, blaming scarcity due to supply chain snags and inflation.
In Canada, Tesla is also offering a $5,000 credit on Model 3 and Model Y vehicles delivered before the end of the year. The same vehicles in China qualify for a 6,000 yuan ($860) discount, according to a report from Reuters.
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