"The $7,500 EV tax credit has officially expired, as it came to its closure at midnight on September 30. Many are wondering what will happen to the EV makers in the United States that had a huge competitive advantage over their competitors, a $7,500 discount that could be applied at the point of sale. Tesla stands to thrive from the lack of tax credit, and although it is hard to believe, brighter days could be ahead for the company, starting with Q4, which began today."
"Tesla has to adjust its pricing strategy now that the $7,500 tax credit is gone, and when it lost the previous tax credit after reaching its cap in 2019, it used a more affordable model to surge sales. At the time, that more affordable model was the Model 3. Tesla boosted deliveries by over 50 percent that year without any tax credit by simply offering a cheaper model."
The $7,500 EV tax credit expired at midnight on September 30. Tesla stands to benefit from the removal because the company can cut prices and leverage manufacturing efficiencies to maintain margins. Tesla previously increased deliveries over 50% in 2019 after losing a tax credit by offering a cheaper Model 3. Without the credit, competitors that relied on the subsidy, such as Ford and General Motors, will face pressure to reduce prices or absorb higher production costs. Market pricing will likely shift toward affordability as companies reassess discounts and margins. Tesla's pricing flexibility could boost sales beginning in Q4.
Read at TESLARATI
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