In a surprising turn of events, Tesla’s Model 3 Rear-Wheel Drive and Long Range vehicles are set to lose up to $7,500 in federal tax credits starting from December 31st. This announcement came as a result of new guidance issued under the U.S. Inflation Reduction Act, according to a message found on Tesla’s website late on Tuesday.
The loss of this tax credit is a blow to Tesla and its customers who were enjoying the financial benefit of purchasing an electric vehicle. The tax credit served as an incentive for consumers to adopt eco-friendly transportation options, and for Tesla, it helped drive sales and establish itself as a leader in the electric vehicle market.
While the exact reasons behind this change in tax credit eligibility are still unclear, it is evident that this will have a significant impact on Tesla’s sales and profitability. Potential buyers who were on the fence about purchasing a Model 3 may now reconsider due to the increased cost. Additionally, this development may also provide an opportunity for other electric vehicle manufacturers to gain a competitive edge in the market.
It remains to be seen how Tesla will navigate this setback and whether they will introduce alternative incentives to maintain their customer base. However, one thing is certain – this loss of tax credits will undoubtedly shape the future of the electric vehicle industry and may prompt the government to reassess its support for eco-friendly transportation options.
Read more at Reuters
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