"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 on September 30, removing a point-of-sale advantage for some automakers. Tesla stands to benefit from the removal by adjusting pricing and potentially cutting prices as it did after losing the prior credit in 2019. A cheaper model like the Model 3 previously drove a more than 50 percent delivery increase without credits. Legacy automakers such as Ford and GM have relied on credits to mask high EV production costs and dealer markups. Automakers must now balance discounts to preserve profits while stimulating demand. Tesla’s manufacturing and technological efficiencies enable greater pricing flexibility and potential affordability gains.
Read at TESLARATI
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