Tesla Reduces Prices in the US Due to Tax Credit Reduction

Tessa announced late last year that tax credits would be halved for customers getting a Tesla in 2019. This applied not only to cars purchased after January 1, but also delivered on or after that date. They opted to pay the difference for customers who made a good-faith effort to receive the vehicles by 2019 but couldn’t, and have now discounted their cars to further help entice buyers.

Tesla has changed their pricing for all models available in the US. The Model S 75D drops from $78,000 to $76,000 while the Model X 75D is now $82,000 instead of $84,000. Potential buyers of the Model S 100D pay $94,000 instead of $96,000 and the Model X 1003 goes from $99,000 to $97,000.

The goal of this move is to help make up for as much of the loss as they can, while still allowing customers to receive the 2019 $3,750 federal tax credit – while also still being eligible for any electric vehicle incentives. Buying a Tesla is definitely a long-term investment, but if you have a reasonable commute and the means to buy one, it’s something you might want to look into. Gas prices also fluctuate a lot – so if the US winds up with high gas prices, at least Tesla owners will be able to keep their transportation costs consistent.

It’s good to see Tesla do what it can to keep people interested in their vehicles. Unfortunately, the high initial prices are going to scare a lot people away and there is very little chance that we’ll see a sub- $40,000 model any time soon. At that price point, it becomes something that is still a major purchase, but one that can be paid for over a reasonable amount of time.

A lack of major-name competition is also going to keep costs high, as there isn’t anyone else at Tesla’s level when it comes to electric vehicles. They can absorb losses that other companies can’t if need be, and can also name their own prices and minimize sales. However there are still some ways to save money on a Tesla – including getting a used model or one from a dealer that has been used for test driving.