Tesla is offering $7500 discount on Model 3 and Model Y electric cars delivered in the United States during this month. This comes amid fears that the automaker will face a softening market as slow economies slow.
This is an increase from its $3,750 discount on Model 3 or Model Y cars delivered prior to the end of this year. For vehicles that were delivered by December 31, it has recently begun offering supercharging at no cost for 10,000 mile (16,093kms).
This latest discount was made possible by the U.S. Treasury Department’s March delay in restrictions on EV incentives. Tesla and all other U.S-made electric cars will likely be eligible for $7,500 of incentives beginning January.
Tesla customers had cancelled their orders, and they waited for the credits to take effect.
Analysts are also concerned that Tesla’s brand and sales could be affected by rising interest rates, and Chief Executive Elon Musk’s distraction via Twitter.
Craig Irwin of ROTH Capital Partners said that the fact they appear to cut prices to increase delivery volumes does not raise confidence in their ability to do so, especially at a time when we are seeing increasing competition.
These rare discounts are the result of a string of price increases by the automaker over the last couple years, which it blamed on supply chain disruptions and inflation.
Tesla shares fell 5% to $130.60 Thursday, after losing more than two-thirds their value this year.
Tesla Canada is offering a $5,000 credit on Model 3 or Model Y cars that are delivered by the end of 2018. American automaker Tesla has offered a discount of $6,000 ($860), on certain models made in China, until 2022.
Tesla stated in October that it will miss its target for vehicle deliveries this year. However, Tesla downplayed concern about the demand following Wall Street’s estimates.