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Tesla offers discounts raising demand concerns

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Tesla offers discounts raising demand concerns
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Tesla recently increased the year-end discount to $7,500 in the US. The company is now also offering $5,000 CAD/$74,750 MXN credit on Model 3 and Model Y vehicles purchased in Canada and Mexico before the end of this year.

The US discount was largely thought of as a response to changing EV tax incentives. It had previously been expected that Teslas would qualify for $3,750 in EV tax credits next year due to the Inflation Reduction Act, but the Treasury announced Monday that they are delaying new rules, which means Teslas will now qualify for $7,500 in tax credits at least until some time in March.

But Canada and Mexico do not have a similar tax credit change coming at the start of the year, so the discount in those territories must not be associated with that. Which means this is a rare instance of Tesla offering discounts, and it could be a sign of softening demand in North America.

Tags: CEOEVTesla

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