Tesla Introduces Price Cuts On Model S, Model X Just As The Federal Tax Gets Halved; Here Is Why
The federal tax credit for electric vehicles was slashed in half in the US beginning 2019. The $7500 tax credit has now been halved to $3750 INR 26 lakh. To adjust the increased burden on the potential buyers Tesla recently updated its online design studio with new prices.
With the start of the new year, Tesla buyers in the US now don¡¯t have access to the full $7,500 (INR 5.3 lakh) federal tax credit for electric vehicles, but the automaker appears to have compensated by reducing the price of all its models in the US.
As the federal tax credit for electric vehicles was slashed in half in the US beginning 2019, Tesla took it to itself to make sure the prices of its models do not surge abruptly. For this, the US¡¯ electric car maker has announced discounts on all of its models.
The $7,500 tax credit has now been halved to $3,750 (INR 2.6 lakh). To adjust the increased burden on the potential buyers, Tesla recently updated its online design studio with new prices of its models. As per it, here are the revised pricings of all the Tesla cars.
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Model S 75D at $76,000 (down from $78,000) [INR 53.4 lakh from INR 54.9 lakh]
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Model S 100D at $94,000 (down from $96,000) [INR 66.1 lakh from INR 67.5 lakh]
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Model X 75D at $82,000 (down from $84,000) [INR 57.7 lakh from INR 59.1 lakh]
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Model X 100D at $97,000 (down from $99,000) [INR 68.2 lakh from INR 69.6 lakh]
Tesla Model X (Tesla)
Why the price drop?
As can be seen, the electric vehicles have attracted a $2,000 discount each. This looks to be a move by the US¡¯ largest electric car maker to compensate for the $3,750 additional tax credit previously available to the customers.
A considerable advantage that the discounts have over the previous tax credit is the fact that the discount can be availed at the time of buying the vehicles. In contrast, the tax credit available previously was adjusted at the ending of the financial year.
Tesla Model S (Tesla)
In addition to the half of the previous tax credit and the new discount, customers in the US will also be able to avail several state incentives linked with the zero-emission vehicles by the company. As per Tesla, such incentives can range up to a total of $4,000 (INR 2.8 lakh) more.
Several experts are calling the move an attempt by the automaker to retain, or even enhance its hold in the market as well as the stock exchange.
