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| © Motor Trend Staff |
From Motor Trend
Tesla sold its 200,000th vehicle in 2018, which means the federal government is starting to phase out its EV tax credits. To soften the blow for customers, Tesla is dropping prices on its vehicles by $2,000.
Now that Tesla has cut prices, the Model 3 starts at $44,000 for the mid-range battery
before incentives. The Model S now begins at $76,000, while the Model X
can be had for $82,000 before incentives. The price cuts won't fully
compensate for the reduced federal tax credits on offer. Starting
January 1, the EV tax credit for Teslas dropped from $7,500 to $3,750.
Tesla
reached the 200,000-vehicle threshold last July. It's the first company
to begin the tax credit phase-out, which happens two calendar quarters
after an automaker hits the 200,000 mark. The $3,750 tax credit will
stay in effect until July 1, when it will decrease again to $1,875. In
2020, customers who take delivery of a Tesla won't get a federal tax
credit.
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| © Motor Trend Staff 2018 Tesla Model 3 Dual Motor Performance 11 |
In addition to the price cuts, Tesla also announced its
fourth-quarter vehicle production and deliveries today. It made 86,555
vehicles in the quarter, including 61,394 copies of the Model 3. Tesla
says this number is in line with its projections, and increased 15
percent from Q3. Following a similar trajectory, Q4 deliveries totaled
90,700 vehicles, including 63,150 Model 3s, up 13 percent from the previous quarter. Still, as CNBC
reports, total deliveries fell short of Wall Street estimates
forecasting Tesla would move 92,000 vehicles, including 64,900 copies of
the Model 3.
For the entire calendar year, Tesla delivered
245,240 vehicles, including 145,846 Model 3s. "To put our growth into
perspective, we delivered almost as many vehicles in 2018 as we did in
all prior years combined," Tesla said in a release.
Tesla says it
will bring the Model 3 to Europe and China in February. Later in the
year, the car will roll out to additional markets, including a
right-hand drive variant. Tesla once again mentioned lower-priced
variants will help expand Model 3 sales, but so far we have yet to see
the elusive $35,000 model Musk promised when the Model 3 debuted.
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