The standard auto companies have begun to claw away EV market share from Tesla.
Tesla reduced the price of its baseline Model Y SUV to $52,990, a 20% reduction. It also dropped the cost of an upper-tier version of its Model 3 sedan to $53,990, a 14% price cut. As a result, both of those models now can qualify for tax incentives under the Inflation Reduction Act.
This law requires that the cost of new EVs does not exceed $80,000 for vans, SUVs and pickup trucks, or $55,000 for sedans. Because Tesla had significantly raised prices earlier in 2022, those two models were priced too high to be eligible for the $7,500 tax rebate. So Elon Musk slashed prices.
But I have to ask why prices were raised last spring?