[mattp]

Per Reuters:

Tesla cut prices on its China Model 3 by 13.5%, which now starts at $33,515, and its Model Y by 10%, which now starts at $37,899, according to calculations from Reuters.

The China prices of the Model 3 and Model Y cars are now 24% to 32% lower than those in the United States, Tesla's largest market, Reuters calculations showed, reflecting a range of factors including material and labor costs.

Tesla also cut Model 3 and Model Y prices by about 10% each in Japan, the first time it had done so since 2021.

Wondering if price cuts will start coming to USA. The price cuts in China were driven by China eliminating the subsidies. That proves that the $7500 tax credit is artificially included in higher MSRP for EV Sales in USA. Knowing that imports are no longer eligible, it reduces the pressure on EV makers to reduce MSRP in USA. This might be the case where EV Credit is actually hurting consumers.

Thoughts.?

 

[EarlyEVadopter]

Per Reuters:

Tesla cut prices on its China Model 3 by 13.5%, which now starts at $33,515, and its Model Y by 10%, which now starts at $37,899, according to calculations from Reuters.

The China prices of the Model 3 and Model Y cars are now 24% to 32% lower than those in the United States, Tesla's largest market, Reuters calculations showed, reflecting a range of factors including material and labor costs.

Tesla also cut Model 3 and Model Y prices by about 10% each in Japan, the first time it had done so since 2021.

Wondering if price cuts will start coming to USA. The price cuts in China were driven by China eliminating the subsidies. That proves that the $7500 tax credit is artificially included in higher MSRP for EV Sales in USA. Knowing that imports are no longer eligible, it reduces the pressure on EV makers to reduce MSRP in USA. This might be the case where EV Credit is actually hurting consumers.

Thoughts.?

If your sense is that US tax credits may be a direct correlation to higher MSRP- maybe that’s why the IRS recent guidelines categorizes all model Y 5 seaters will only qualify for if sold for no more than $55,000? So Is the IRS trying to dictate to Musk that he better consider reducing his current margins if he ever hopes to play in their game?

 

[mattp]

If your sense is that US tax credits may be a direct correlation to higher MSRP- maybe that’s why the IRS recent guidelines categorizes all model Y 5 seaters will only qualify for if sold for no more than $55,000? So Is the IRS trying to dictate to Musk that he better consider reducing his current margins if he ever hopes to play in their game?

I do hope IRS is thinking/acting that way.

 

[EarlyEVadopter]

I do hope IRS is thinking/acting that way.

However if that’s really the case, I wouldn’t put it past Musk to cease Tesla US production altogether just out of spite. He could elect to increase his Chinese mfg. production and start shipping those EV’s to the USA after formulating an attractive lease program. Regardless, as things stand right now, any commercial lease program would allow any bargain basement Chinese mfg. EV to qualify for a federal tax credit. Of course I’m being facetious, but I suspect other Chinese EV makers are now paying close attention.