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Tesla Will Cut Prices To Combat Tax Credit Phase Out (cnn.com)
Tesla is cutting its car prices in the United States by $2,000 to combat a cut in a federal tax credit for its buyers. "Tesla triggered the tax credit phase-out in July when it became the first car maker in the United States to sell more than 200,000 plug-in vehicles," reports CNN. "The government designed the credit to be phased out for each automaker once it reaches that milestone." From the report: Before that benchmark, Tesla buyers were entitled to a tax credit of $7,500 for purchasing a plug-in electric car. But as of January 1, Tesla buyers will only get half that credit, or $3,750, for the next six months. The credit falls to $1,875 in July, and then disappears in 2020. The tax credit phase-out comes just as Tesla was preparing to sell a $35,000 version of its Model 3 sedan, the first time it will be taking aim at the price-conscious mass market. CEO Elon Musk said in an interview on "60 Minutes" that he expects the lower-priced version of the Model 3 to be available in five to six months.
Tesla also reported strong production and sales for the just completed fourth quarter. Total sales were up 8% and Model 3 sales were up even more, about 13%, to 63,150 vehicles. That works out to an average of about 4,900 Model 3s per week in the quarter, putting it in range of its goal of 5,000 Model 3's a week.
Tesla also reported strong production and sales for the just completed fourth quarter. Total sales were up 8% and Model 3 sales were up even more, about 13%, to 63,150 vehicles. That works out to an average of about 4,900 Model 3s per week in the quarter, putting it in range of its goal of 5,000 Model 3's a week.
They want $35k for a 200 mile range car, when Hyundai and Kia have 260 mile range cars for closer to $30k
Hilarious. Are you talking about the Kona, for $30k - *after* the $7500 tax credit, manufactured at a fraction of the rate of Model 3? Originally planned 30000 vehicles per year! As many manufactured in a month as Tesla does in half a week...competition indeed? How is the $35k model "uncompetitive" against this? The waiting list for this is going to be even worse!
Ezekiel 23:20
Further proof that conservatives just hate Tesla.
When Tesla is unprofitable (even with "inflated" prices) they say Tesla is a sham that can't make money so we shouldn't be subsidizing a failed business model.
When those "inflated" (subsidized) prices finally help build a sustainable business suddenly it's proof that they never needed subsidies and Tesla was always going to succeed anyway.
The same is said of wind power and solar. We shouldn't offer solar\wind subsidies because they're a dead end waste of money. When solar\wind finally are cost effective then suddenly those subsidies are scams because solar\wind is cost competitive.
I guess expecting people to see cause\effect relationships is asking too much. Kind of like the person who said Bush and Obama shared "equal blame" for the financial crisis... of 2007 (a year before Obama took office).