Key takeaways:
- Tesla Inc. dramatically reduced prices on several of its electric vehicles, making them eligible for a new federal tax credit.
- The company dropped prices nearly 20% on some versions of the Model Y SUV, and reduced the base price of the Model 3 by about 6%.
- The new federal tax credit could help Tesla boost sales and make its vehicles more competitive with other electric vehicles on the market.
Tesla Inc. made a dramatic move on Friday to slash prices on several of its electric vehicles, making some of its models eligible for a new federal tax credit that could help spur buyer interest. The cut will make more versions of the Model Y eligible for a $7,500 electric-vehicle tax credit that will be available through March.
The company dropped prices nearly 20% in the United States on some versions of the Model Y SUV, its top seller. Tesla also reduced the base price of the Model 3, its least expensive model, by about 6%.
Despite the move, investors were not pleased. Tesla shares dropped nearly 4% in midday trading Friday. This comes as Tesla’s sales have been slowing and its stock price tumbling.
The new federal tax credit could help Tesla boost sales and make its vehicles more competitive with other electric vehicles on the market. The company is hoping the tax credit will encourage more people to buy its vehicles, and that the price cuts will help make its vehicles more attractive to potential buyers.
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