More people than ever are eager to get their hands on the Tesla Model 3– from those who’ve pre-ordered it, to those who’ll buy one soon after its release. This vehicle is super in-demand due to being powered mainly by electricity, not to mention it’s incredibly beautiful and powerful in its own right.

Having said all that, the main downside of this car is the price

Tesla is notoriously a high-end luxury car company; and their vehicles don’t come cheap. A recent change in the U.S. government tax code has resulted in a price change for multiple Tesla vehicles, included the new Model 3.

According to The Verge, thanks to the U.S. federal government cutting the Electric Vehicle (EV) tax credit, Tesla has lowered their vehicle prices by appx. $2000.

The result of this means that the Model 3 will now start at $44 000 USD; the Model S begins at $76 000 USD; and the Model X begins at $82 000 USD.

 

To learn how this happened, it helps to understand how the EV tax credit has changed. It was created by then-President Barack Obama to encourage people to purchase energy efficient vehicles, and to encourage car companies to lean green. However, this was never permanent. The EV tax credit was to be phased out for a company once they built their 200, 000th eligible car. The IRS then drops the tax credit from $7500 USD to $3750 USD by January 1st, 2019. Given the fact that Tesla hit the 200, 000 benchmark during the summer of 2019, it’s unsurprising that they’ve lost the bulk of this tax credit.

When this first became apparent, then-CEO Elon Musk had protested the EV tax credit decrease as 2018 drew to a close. Back in October, Tesla promised customers that any online orders made then would get their new car by the end of the year, allowing the customer to receive the EV tax credit in full. Such claims were made up until the end of December. They even pushed customers to keep checking online or in their closest Tesla dealership for any last minute availability. The result of this aggression, according to Tesla, was that three-quarters of Model 3 orders placed in the last quarter of 2018 were from new customers, rather than from customers with hold reservations.

The result of this aggression, according to Tesla, was that three-quarters of Model 3 orders placed in the last quarter of 2018 were from new customers, rather than from customers with hold reservations.

 

With the prices of all Tesla vehicles coming down, it may make more people interested in buying one of their own. That could be either the incoming Model 3, or another car from the company. It be interesting to see over the next few months or so if Tesla sells more vehicles due to the price reductions.

Source: The Verge

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