ST Alpha - ""...in an attempt to qualify for the tax credit." With their margins and the increase in output from the Texas plant -- (edited)" (Reading a Post)

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In response to "Tesla slashing prices by 20% in an attempt to boost sales -- (link)" by decline

"...in an attempt to qualify for the tax credit." With their margins and the increase in output from the Texas plant -- (edited)

Posted by TWuG Jan 13 '23, 06:57

They can afford to compete on prices based on the tax credit structure.

There's a difference between dropping prices because demand is low versus dropping prices to qualify buyers for a tax credit.

The first represents a weak product, the second represents a product with a high degree of price flexibility. Put another way, Tesla was charging what the market would bear and the market shifted and they are able to shift with it.

I understand the market's reaction, because it does reduce Tesla's profit margin, but it doesn't move the company into unprofitability. Their automobile margins are huge by industry standards.

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what is the price cap for the tax credit? (I should know.) are tesla deliveries increasing QoQ still? like, is demand there? -- nm - judge indianapolis jones Jan 13, 07:14 2
- 2022 sales by quarter - TWuG Jan 13, 07:32
- YoY demand was up ~40%. Trucks, vans, and SUVs need to retail under $80k, cars under $55k. There are also income limits. -- (link) - TWuG Jan 13, 07:24

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"...in an attempt to qualify for the tax credit." With their margins and the increase in output from the Texas plant -- (edited)

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