![]() ![]() The firm predicts that Tesla’s share will drop to 20% by 2025. According to a report from S&P Global Mobility discussed in this CNBC article, Tesla’s share of the EV market has dropped in the United States from 79% in 2020 to 65% in the third quarter of last year. While it’s possible that Musk is doing this out of the goodness of his heart, the reality for the company is that it’s been losing market share as brands like Ford, Kia, Volvo, Polestar, and others offer comparable vehicles. ![]() In addition to keeping ahead of the quirk in federal tax law, this is likely also to be a boon for Tesla when the company needs to change the narrative from stories about CEO Elon Musk only caring about Twitter now and crashes involving cars with semi-automated driving systems. The Model Y Performance has also seen a massive price drop (at 23%, likely the biggest) to $56,990, though this probably keeps it out of range for a federal tax credit. The same can be said for the Model Y Long Range, which was dropped to $52,990 from $65,990. The base Model 3 was also dropped to $43,990, which means you can potentially get into a Model 3 for $36,490. If you meet the other requirements you could, in theory, buy a Model 3 Performance for $46,490. It’s now listed as $53,990, which means it does potentially qualify. Up until this evening, a Model 3 Performance cost $63,900 which meant it didn’t qualify. A vehicle has to be under $55,000 if it’s a regular passenger vehicle and $80,000 if it’s an “SUV.” This is important. The income levels requirement is in place (meaning you need to make $150,000 or less filing solo or $300,000 filing jointly) and, more importantly, the price limit of a vehicle also is in place. We have a write-up explaining this you can read.īecause of a debate over interpretation of the law, the IRS has delayed offering a final ruling on certain aspects until March 31st of this year. The new law removes the 200,000 limit but puts additional requirements (like sourcing of battery materials) on automakers to qualify for the full $7,500. ![]() Prior to the law, the government’s initial tax credit had no price or income cap but was limited to 200,000 vehicles per automaker. The Inflation Reduction Act, which passed last year, fundamentally altered the way the government gives credits for buying an electric vehicle. “If I were to guess, this is an effort to qualify for the tax incentives while getting the largest possible quantity of new cars on the road in 2023,” said Levenson. “A Part of me is excited more people can afford to buy a Tesla and part of me is disappointed for recent customers who had to pay more to buy a car just a couple days ago, especially anyone who purchased in the last 12 days.” “Honestly, I’m not even sure what to make of these changes,” Ryan Levenson, who owns the EV Cannonball Run record in a Tesla and makes videos about EVs, told me in a DM. Additionally, Tesla also dropped prices on other vehicles in the lineup, even though it may not qualify for tax credits. This move seemingly was done to take advantage of a procedural move by the IRS, which we wrote about earlier, that makes it possible to get the full $7,500 tax credit on a Tesla for a few weeks. Tesla has lowered prices of its vehicles seemingly across the board in an unannounced late night move, with prices dropping as much as 23% for a Tesla Model Y Performance and 6.4% for a Tesla Model 3 RWD. ![]()
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