Discounts on new cars are exceptionally rare right now, with prices near all-time highs. And price cuts on electric cars are almost unheard of late in 2022.
Manufacturers can easily count on selling every electric car they can build. Electric car sales have surged in 2022, even as overall car sales have fallen.
So, a discount on an electric vehicle (EV) is an exceptionally rare sighting this month. But a strange confluence of factors has reportedly led Tesla to offer a $3,750 discount on both of America’s best-selling electric cars until the end of 2022.
Electrek reports that Tesla is now offering a $3,750 “price adjustment” on “every Model 3 and Model Y vehicle delivered in the US in December.”
The price change is not yet reflected on Tesla’s website as of this writing.
Buyers Delaying To Qualify for Tax Credit
Why the change? Reportedly, it’s because of the Inflation Reduction Act.
The act changes the rules governing which cars, and which buyers, qualify for a federal tax rebate of up to $7,500 on the purchase of a new EV.
The rebate isn’t currently offered on any Tesla vehicle. Under pre-Inflation-Reduction-Act rules, Tesla didn’t qualify because the company had sold more than 200,000 EVs.
Under rules that will take effect on Jan. 1, that restriction disappears. Many Tesla models still won’t qualify because of new caps on both the car’s price and the buyer’s income. But the Model Y and the least-expensive trim level of the Model 3 fit under the caps. They’ll earn the discount.
Related: How Do Electric Car Tax Credits Work?
That, Electrek reports, has many Tesla buyers asking the company to delay the delivery of their cars until 2023.
Shifting Economic Conditions, Long Wait Times
Others have reportedly canceled their orders altogether.
Tesla has long wait times for a new car. The company’s website currently says that a Model Y ordered today could be delivered as late as next March.
“Long wait times are leading to some customers’ situations changing between the time they place their order and the actual delivery — resulting in cancellation. That’s quite frequent,” Electrek says.
With recession warnings sounding, some may put off a new car purchase altogether. Others may be reacting to changing public perceptions of the company.
The combination means a rare discount on the best-selling electric cars in America. For some buyers, waiting for the tax rebate in January is still the best move. But if you plan to buy a Tesla and your income will keep you from qualifying for the tax incentive, this could be the lowest price you’ll see.
The rebates are limited to individuals reporting adjusted gross incomes of $150,000 or less on taxes, $225,000 for those filing as head of household, and $300,000 for joint filers.
