Tesla slashes prices by $7,500 in end of year sale
Discount comes ahead of new tax credit
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Tesla is putting a ton of money on the hood.
Or perhaps in the frunk.
The electric automaker is advertising what is essentially an end of year clearance sale for its Model 3 and Model Y vehicles.
Tesla is offering a $7,500 discount and 10,000 miles worth of free charging on its Supercharger network for anyone whose buys one of the cars from inventory by Dec. 31.
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Tesla is lowering the price on two models by $7,500. (Justin Sullivan/Getty Images / Getty Images)
The free charging is non-transferrable if the car is resold. The more expensive Model S and Model X are being offered only with the Supercharger incentive.
The Buy Now button on the website is currently set to take shoppers directly to the Inventory list, rather than the custom order configuration feature.
The Model 3 is Tesla's lowest-priced car. (Tesla / Getty Images)
Tesla had previously been offering $3,750 on the cars since Dec. 1.
The company has been known to do a delivery push near the end of quarters, but the large discounts are unusual and come after it raised the price of both vehicles several times over the past year.
The move also follows a decision by the U.S. Treasury Department to delay the release of new rules regarding the updated federal tax credit for electric vehicles.
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After being excluded from the previous program due to exceeding the allotted sales cap, Teslas will once again be eligible for credits under the new law.
Tesla builds all the cars it sells in the U.S. in California and Texas. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
It is designed to prorate them based on the locations of their battery pack assembly and critical materials supply, with an emphasis on North American manufacturing and free trading partners, but the guidelines won't be finalized until at least March.
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That means Teslas should qualify for the full $7,500 credit from Jan. 1 until the pack production and sourcing rules officially go into effect.
The Treasury Department said it will issue an update on the "anticipated direction" of the regulations before the end of 2022.
"The information will help manufacturers prepare to be able to identify vehicles eligible for the tax credit when the new requirements go into effect," it said in a press release.