The tax credit was officially expired, with a value of $ 7,500, as it came to closing it at the middle of the night of September 30. Many wonder what will happen to EV makers in the United States who had a great competitive advantage over their competitors, a $ 7500 discount that can be applied at the sale point.
Tesla will stand from prosperity from the lack of tax credit, and although it is difficult to believe that the brighter days may be in front of the company, starting from the fourth quarter, which started today.
Here are five reasons that may be in a better condition without tax credit available:
No tax credit means discounts in prices
Tesla has to adjust its pricing strategy now after the 7,500 dollars tax credit disappeared, and when I lost the previous tax credit after reaching the maximum in 2019, it used a more reasonable model to increase sales. At that time, this model was affordable was the 3 -year -old.
Tesla has strengthened the delivery of more than 50 percent of that year without any tax credit by providing a cheaper model. Credit, in some way, distorts the market, and companies, with an attempt to innovate, are able to provide the opponent with the help of the government.
Reducing the prices of Tesla pays the EV market towards the ability to afford costs with a wider effect
Companies will now have to weigh what they can deduct their cars to maintain reasonable profits, but also request the order.
In the end, Tesla has the ability to use manufacturing and technological competencies to increase the ability to withstand costs. It has more control over price fluctuations, and price cuts can be on the road.
The stadium becomes more fair
Companies such as Ford and Granur Motors also reaped the benefits of tax credit, but their position is much different from Tesla.
Ford and GM are not pipes in EV projects, so EV tax credit was relied on to hide high production costs and signs of agents, which widespread its request. Ford is among the most popular brands that covered its fingers in the EV market, but it was forced to control its strategy on several occasions due to a lack of profits.
Tesla compounds were profitable for some time, and the company was able to make money from its offers faster. Cybletruck was profitable after only one year of production.
Tesla Cybletruck achieves the positive signs for the first time
The removal of subsidies will display the financial weaknesses of these local competitors, and we will likely see that these companies are expanding in EV’s efforts in the coming months and years. This will help Tesla more than access to tax credit, something said Elon Musk for years:
First of all, Tesla did not get this tax credit for consumers for years and we did not ask this –
– Elon Musk (@elonmusk) 6 October 2022
In my opinion, we must end all government subsidies, including those for EVS, oil and gas
– Elon Musk (@elonmusk) November 14, 2024
Tesla maturity and investor trust will enhance
Tesla was once rejected as a start -based start, but this novel has already died years ago, as it continued to perform well against competitors even after the loss of tax credit.
Musk himself said that canceling these benefits “will only help Tesla”, because it will highlight the company’s ability to self -sufficiency.
Elon Musk repeats the invitation of all support on all industries to remove them
Using things such as manufacturing efficiency and vertical integration, Tesla was less than other than to help build its cars. If there is anything, it is possible that investors will see the next few months as a working period or superiority for companies that build EVS.
Sometimes the subsidies can prevent real innovation
Some companies can tend to become satisfied when government subsidies are provided on their products. Instead of making things better and trying to find new ways to make cars more expensive, some can rely on the help they get.
After completing the subsidies to Tesla in 2019, the company achieved two main penetrations: its energy storage projects were limited to Gigawatt-Hours. The argument is not to become satisfied with the tax credits, but the company will feel more pressure to fight for innovation now after it appears on the wall.
It already provides a better product from the technology point of view, so it can really be the ability to withstand the next main change that we see.
The models will be more affordable yet
Tesla will launch its affordable models in this quarter, and with no more tax credit to rely on, these new cars will be what many consumers go to.
If Tesla is able to launch a model that is close to $ 30,000 without obtaining tax credit, the company will offer a large part of its market share of competitors who have eroded it over the past few years. This will undermine the vast majority of electric cars currently being offered.
2025 Nissan Leaf S TRIM – 28,140 $ 2025 FIAT 500E BASE TRIM – 32,500 $ 2025 Chevrolet Exhinox EV – $ 33,600
These are the three most affordable EVS EVS in the United States at the present time, and these prices are without tax credit. If Tesla can get approximately $ 30,000, you will really make a sign and there may not be every change in annual delivery numbers.
