"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."
"Companies like Ford and General Motors have also reaped the benefits of the tax credit, but their situation is much different than Tesla's. Ford and GM are not profitable on their EV projects, so the EV tax credit has been relied upon to mask high production costs and dealer markups, which have widely impacted their demand. Ford is among the more popular brands that have dipped their toes into the EV market, but they have been forced to adjust their"
The $7,500 federal EV tax credit expired at midnight on September 30, removing a point-of-sale discount previously available to many buyers. Tesla may benefit from the credit's removal because the company can adjust pricing, lean on manufacturing and technological efficiencies, and drive affordability through price cuts similar to its 2019 Model 3 strategy that increased deliveries by over 50 percent without a credit. Legacy automakers like Ford and General Motors have relied on the credit to offset unprofitable EV projects, masking high production costs and dealer markups that have hurt demand. The market now faces more equal competition and renewed pricing pressure.
Read at TESLARATI
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