Tesla Cuts Prices On All Cars By $2,000 To Offset Reduced EV Tax Credits

When Tesla announced that they would be reducing the prices of its cars by $2,000 in the US, people on Twitter went absolutely crazy, with the usual Twitter haters declaring this the end for the electric car company, a sign that demand was slowing for their cars.

In truth, Tesla actually sold a record number of vehicles this year (delivering 245,240 vehicles to customers worldwide in 2018). And since Tesla reached the 200,000-unit sales cap as set by the IRS, the $7,500 tax credit has been reduced to $3,750 for sales completed prior to July 1st, at which time the tax credit drops to $1,875.

As such, Elon Musk and Tesla decided to cut base prices on all nine variants of the Model 3, S, and X by $2,000 to offset the reduced tax credit and keep the sales momentum going. “We are taking steps to partially absorb the reduction of the federal [electric vehicle] tax credit,” Tesla said in a statement.

That will definitely keep the momentum going as intended. And for consumers who are still having trouble grasping all the numbers, there are tons of free tax filing resources available that can help. The laws surrounding tax credits (especially for energy efficiency) are in a constant state of motion.

With this price drop, the Tesla Model 3 now starts at $45,200 for the Mid Range version. The Model 3 Long Range starts at $52,200, and the Performance comes in at $63,200.

The Model S begins at $77,200 for the 75D, $95,200 for the 100D, and a hefty $134,200 for the P100D. The Model X SUV follows suit, at $83,200, $98,200, and $139,200 for the same 3 trims.