Tesla is offering a $7,500 discount on its Model 3 and Model Y electric vehicles to be offered in the United States this month, its website showed Wednesday, amid concerns that the automaker could be hit by a slowing economy. Demand is falling.
That’s on top of the $3,750 discount provided before the end of the year on Model 3 and Model Y vehicles. It also recently started offering free supercharging for 10,000 miles (16,093 km) for vehicles delivered in December.
The latest exemption comes days after the U.S. Treasury Department delayed restrictions on EV incentives until March, meaning Tesla and other U.S.-made electric vehicles could potentially qualify for $7,500 in incentives starting in January. .
Customers canceled their orders and put their purchases on hold until the new credits went into effect in January, weighing on demand for Tesla.
Analysts also worry that rising interest rates and CEO Elon Musk’s Twitter distractions could hurt the Tesla brand and sales.
“The fact that they’re cutting prices to increase shipment volume doesn’t inspire confidence, especially at a time when we’re facing increasing competition,” said Craig Irwin, a senior analyst at ROTH Capital Partners. Looking at.”
The rare concessions follow a string of price hikes by the automaker over the past few years, blamed on supply chain disruptions and inflation.
Tesla shares, which have lost more than two-thirds of their value so far this year, were down 5 percent at $130.60 on Thursday.
Tesla is also offering a $5,000 credit on Model 3 and Model Y vehicles delivered before the end of the year in Canada. The American automaker has also offered a 6,000 yuan ($860) discount on some models in China until the end of 2022.
Tesla said in October it would miss its vehicle delivery target this year, but downplayed concerns about demand after missing Wall Street estimates.
($1 = 6.9761 yuan)