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Tesla Slashes Car Prices to Combat Shrinking EV Tax Credit

by Danny Zepeda | January 3, 2019January 3, 2019 9:30 am PST

Tesla is making its cars more affordable in the wake of the federal tax EV credit getting cut in half in 2019. The EV tax credit, which prior to January 1, 2019 was $7,500, was a great incentive to buy an electric car. But that’s getting slashed to $3,250, so Tesla has responded in kind by cutting the price of its cars by $2,000.

The $2,000 price cut applies to the Model S, X and 3. It still won’t make up the full price of the original discount, but it’ll go a long way to add interest in Tesla EVs, which are enjoying a nice run of success as production for the Model 3 stabilizes.

In total, Tesla sold 245,240 vehicles in the 2018 calendar year, with a breakdown to 145,846 Model 3 units and 99,394 Model S and X units sold. Tesla says that figure is as many cars as the company sold in the prior years combined.

With the new discount taken into account, the base Model 3 will now start at $44,000, the base Model S will start at $76,000, and the base Model X will start at $82,000.

Tesla

Danny Zepeda

Born and raised in Southern California, Danny grew up on a steady diet Pixar, Star Wars and Steven Spielberg movies. Unbeknownst to him, this was...

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