"To hedge his car business's success, Musk will launch a $25,000 version of the Model Y SUV, which is Tesla's best-selling vehicle. The price point may also offset the end of the $7,500 EV tax credit. Most car industry analysts believe the end of this benefit will batter U.S. EV sales. Musk has to be concerned that in the first three quarters of the year, Tesla's U.S. market share was about 46%."
"A new EV sold in the United States costs about $10,000 more than a gasoline-powered one. Moreover, the price of electricity is rising as the price of gas is falling. EVs still face customers who do not want to wait a long time to charge their cars and may struggle to find public charging stations. EVs also go through tires more quickly and often do not fully charge their batteries in cold weather."
Tesla is positioning itself as an artificial intelligence and robotics company while still depending on vehicle sales performance. The company plans to introduce a $25,000 Model Y to spur demand and counter the loss of a $7,500 EV tax credit. U.S. market share has declined to about 46% from 80% a decade ago, while GM and Ford gain ground. New EVs typically cost about $10,000 more than gasoline cars, electricity prices are rising, charging time and availability remain major consumer concerns, tires wear faster, and cold weather reduces charging effectiveness. A $25,000 EV is seen as key to expanding the buyer pool.
Read at 24/7 Wall St.
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