Image: Tesla
Tesla is offering discounts on Model 3 and Model Y purchases in North America, strengthening its position in 2022. Tesla's ability to drive down the price of its cars in a declining car market is its big competitive advantage.
Tesla has offered discounts on its Model 3 and Model Y electric vehicles in North America. According to its website, the manufacturer is offering a $7,500 rebate in the US and a $5,000 rebate in Canada if the car is delivered before the end of the year. Plus, Tesla is offering 10,000 miles of free charging.
It is worth bearing in mind that the company's US production capacity continues to grow, with the acceleration of production at Giga Texas, which increased the number of vehicles that can be delivered in 2022. Clearly, some customers were preparing to take delivery of the car and make payment only in 2023 to ease the financial burden at the end of this year. However, an incentive to accept delivery before the end of the year could make a difference for them. This, in turn, will provide Tesla with a higher delivery figure, as well as higher profits for Q4 and for the whole of 2022, which is a definite positive.
Tesla's higher margin per vehicle produced makes it possible for the company to provide a lower purchase price for its customers, which is a huge competitive advantage that other manufacturers will not be able to compete with. This moment has been noted by several analysts who are confident that Tesla's share of the electric vehicle market will grow thanks to this.
“Tesla's price cuts started in China and we expect them to quickly spread to Europe and the US. While in circular nature, lower EV prices are important for the next leg of mass adoption, but depress the returns of many of the companies expected to compete against Tesla,” Morgan Stanley wrote in a note Wednesday.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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Article edited by @SmokeyShorts; follow him on Twitter
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
