Federal EV tax credits expired yesterday, eliminating an up to $7,500 incentive for buyers. Tesla said it would see fewer negative impacts from the changes than other automakers, but it recently hiked lease prices as the credits came to a close.
Tesla bumped lease prices for some vehicles, pushing the Model Y to up to $599 per month for some configurations, a $70 increase. The Model 3 increased by up to $90 for some leases. These changes are likely due to a range of challenges Tesla faces, including a drop in demand, even before the credits stopped.
Tesla’s market share dropped to its lowest point in eight years last month. Data from Cox Automotive showed that the company’s share dropped to 38 percent in the U.S. as buyers shopped electric options from other brands, the number of which have grown rapidly over the last few years.
The tax credits just ended, so there’s no way to know the impact of the change just yet. Some automakers have begun offering in-house incentives and discounts to compensate for the loss of tax incentives, but that effort can’t continue forever. Tesla’s precarious position means it likely can’t manage significant discounts, which may further decrease its standing with buyers.
[Images: Tesla]
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