Tesla is offering a new discount for Model S and Model X for just two days. Previously, it was only for Model 3 and Model Y.
As we have recently reported, Tesla has been having some rare demand issues lately – especially in the United States, due to unique circumstances.
It has been years since Tesla hit 200,000 deliveries in the United States, which meant the company no longer qualified for the US federal tax credit for electric vehicles. But Tesla buyers are soon expected to regain access to the incentive, which is valued at up to $7,500.
As the incentive is being put in place for 2023, buyers need to take delivery of their vehicles on or after January 1 to qualify.
This situation is incentivizing buyers to wait until after the new year to purchase a Tesla vehicle in the United States. We reported last month that it also contributed to an increase in cancellations as Tesla is not allowing buyers to delay orders to get them next month.
Earlier this month, we learned that Tesla started offering a $3,750 discount to buyers for Model 3 and Model Y vehicles in order to combat this issue. The amount was interesting since it is half the $7,500 tax credit.
Now Tesla is also bringing the $7,500 discount to Model S and Model X vehicles for new orders that can be delivered today or tomorrow, according to a source familiar with the matter. Previously, Model S and Model X buyers were only getting 10,000 free Supercharging miles for free and not a direct discount.
In this case, it has nothing to do with the upcoming tax credit for electric vehicles since neither the Model X nor the Model S will qualify due to their starting price being over the MSRP limit for sedans and SUVs.
This shows that Tesla’s demand issues are a bit beyond the tax credit.
However, with only two days left in the year and with this discount being about Model S and Model X, it won’t affect too many deliveries.
Tesla is trying to remove any inventory it has at the end of the quarter. It’s a practice that has often been referred to as an “end-of-quarter delivery push.”
CEO Elon Musk admits that it’s not really efficient, but it looks better on the balance sheet at the end of the quarter.