The Clap
Tesla (NASDAQ:TSLA) is cutting prices for its EVs in the US and Europe to stimulate sales.
What
The Model 3 and Model Y’s prices dropped in the US by up to 14% and 19% respectively depending on the configuration.
The company also cut prices on its Model 3 and Model Y EVs in Austria, France, Germany, Netherlands, Norway, Switzerland, and the UK.
The discount makes Tesla’s Model 3 comparable to the base model of the Volkswagen ID.3.
So What
In the US, EVs can qualify for tax credits, a benefit provided by the government that reduces the dollar amount of taxes owed, depending on the category they fall into, range, efficiency, and price.
The price cuts potentially put Tesla in a stronger position to benefit from tax credits in both the short and long term.
Now What
The company is also expected to have an increased production capacity in 2023 following the expansion and establishment of several new factories.
