No fewer than 145,846 examples of the breed were delivered, with 1,010 units in transit at the end of the fourth quarter. Tesla makes a case for inventory levels that are “the smallest in the automotive industry,” which goes to show the competition has a lot of catching up to do.
As the headline suggests, Tesla is also operating a price reducing in the United States as of January 2019 because the federal tax credit was reduced from $7,500 to $3,750. Customers “may also be eligible for several state and local electric vehicle and utility incentives, which range up to $4,000.”
Even though it’s riddled with issues as a consequence of accelerated production, the Model 3 was “the best-selling premium vehicle in the U.S. for the full year.” Tesla highlights that U.S. sales of the cheapest model in the lineup are “double those of the runner-up.”
A stellar finish to 2018 and encouraging news for 2019, Tesla appears to understand that the halving of the federal tax credit is a matter of life and death in the business of selling electric vehicles. After all, no automaker would reduce the price of its entire lineup by $2k when sales are better than ever.
On the other hand, the net effect of the reduction translates to a $1,750 increase for the consumer. Looking at the matter from a different perspective, some people have $3,750 or less tax liability, thus making the price cut far more relevant than the $7,000 federal tax credit operated before 2019.
Lowering the MSRP for the 3, S, and X further translates to tax cuts and registration fee drops in various states, along with lower insurance. Last, but certainly not least, a lower retail price makes it easier to access a loan and lower monthly payments.
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