Tesla is offering Model 3 and Model Y buyers in the United States a $3,750 credit if they have their vehicle delivered in December 2022, according to an update on the company’s inventory page and several posts on Reddit.
Tesla didn’t share the reason for such generosity or publicize the news widely – customers received the offer through messages from their dealerships. The automaker may want owners to take deliveries before the end of the year in order to boost its fourth-quarter sales numbers, which could decline as customers push delivery times into 2023. in order to be eligible for the tax credit for electric vehicles. .
Tesla cars have not been eligible for an electric vehicle tax credit for some time, since the automaker hit the previous cap of 200,000 vehicles sold. But with President Biden’s Inflation Reduction Act (IRA), that cap will be removed by January 1.
Under the new legislation, zero-emission vehicles will be eligible for up to $7,500 in tax credits if automakers can prove that their battery components were manufactured or assembled in North America. and that a certain percentage of battery-critical materials have been mined or processed in countries with which the United States has a free trade agreement. If an automaker can only show half, they’ll only get half the rebate, which they will likely be for the next few years, given that most critical materials still come from China.
Which brings us back to the $3,750 rebate — the same amount a Tesla buyer should pick up as a rebate next year. But instead of waiting for tax season, Tesla’s offer lets customers reap the benefits now.
Tesla’s rebate also doesn’t discriminate based on income or the vehicle’s manufacturer’s suggested retail price (MSRP), according to messages received from Tesla customers. Under the IRA tax incentive, single filers are eligible if their income is less than $150,000; household heads if income is less than $225,000; and joint filers if income is less than $300,000. In addition, new electric cars and SUVs that cost more than $55,000 and $80,000 respectively are not eligible for the tax credit.
The Model 3, a compact car, starts at around $47,000 but can easily top $66,000 depending on model, trim, and year. And the 2022 Tesla Model Y starts at $64,990, but a fully loaded performance model can cost upwards of $80,000.
It’s not common for Tesla to offer discounts – in fact, it’s the automaker that raises its price instead. So the upcoming tax credit may not be the only reason Tesla is suspending rebates. A new report from S&P Global Mobility has revealed that Tesla’s market dominance in the United States is waning. The company still dominates the electric vehicle sector with its 65% market share, but this is down from 79% in 2020 and could fall below 20% by 2025. market comes as other automakers roll out more affordable electric vehicles.