Tesla Boosts The Price Cut It Offers On The Model 3 And Model Y To The Entire $7,500 In Government Subsidies

According to reports, Tesla now doubles the credit it previously offered to customers who order its EVs for December delivery because it believes that its vehicles would be eligible for the entirety of the new federal EV subsidy on January 1. According to reports, all made-in-the-US EVs will now receive the entire subsidy amount in Q1 after the Treasury postponed its subsidy requirement rules for March. Following the Treasury Department's statement that it will delay the issuance of its formal revised EV tax credit requirement standards until March 2023, Tesla promptly increased the US$3,750 credit it provided toward the purchase of a new car for delivery in December by double. This most likely means that all-electric vehicles sold between January, when the government's subsidy program officially begins, and March of the following year will be eligible for the full US$7,500 subsidy amount, regardless of whether their batteries fully meet the tax credit's requirements for sourcing raw materials and components. Tesla had to double the price discount incentive to the full US$7,500 subsidy amount it now knows its cars will be eligible for next month because the primary goal of its initial US$3,750 credit incentive - to offset the portion of the subsidy it thought its EVs qualify for so that buyers don't wait until January to make a decision - became moot. Additionally, the brand-new promotion of 10,000 free Supercharger miles is still available in exchange for a massive discount of up to US$9,000 on an inventory car scheduled for delivery in December, much to what Tesla offered for its vehicles in China, albeit with a more obvious price reduction. The Treasury was supposed to release its new EV tax credit application guidelines by the end of the year for the Inflation Reduction Act's implementation, but after receiving strong criticism of the federal incentives' design, including from allies in the European Union who claimed that they constituted subsidies that the WTO might deem unconstitutional, it has decided to delay the decision to address everyone's concerns. Since GM will once again be eligible for the tax credit when the new year arrives, cars like the Chevy Bolt, one of the least expensive electric vehicles in the US, will continue to sell for breathtakingly low prices under $20,000 at which point the full subsidy amount will apply to the model. The first quarter of 2019 may see a surge in electric vehicle sales in the US as the Tesla Model Y and various Model 3 trims will also be eligible for Uncle Sam's generosity.