Tesla on the rise: elimination of the US tax credit could bring profit!

Tesla on the rise: elimination of the US tax credit could bring profit!

A striking turning point for the electric vehicle industry took place on September 30 at midnight when the federal tax credits for electric cars in the United States expired. This measure could have a significant impact on manufacturers and consumers. The $ 7,500 tax loan, which was previously considered new electric vehicles, is now history. What does this mean for the future of electrically operated cars?

How teslarati.com reports, manufacturers like Tesla, Ford and GM are now without this financial support. However, Tesla could benefit from the absence of subsidies, especially in the coming fourth quarter when new models come onto the market. In the past, the car manufacturer has shown that it can increase its sales figures without government support; In 2019, after losing a similar credit, the company launched the Model 3 and boosted sales by more than 50%.

Changes in the market

But the situation also brings challenges. Tesla's price strategy must be reconsidered because the company now has to find new ways to move customers to buy. With the deletion of the tax credit, the market may be fairer, because manufacturers such as Ford and GM have strongly rely on these financial incentives to compensate for their high production costs. For and GM in particular are not yet profitable in the area of ​​electric vehicles.

The very absence of such incentives could expose the financial weaknesses of competing brands and reduce their efforts in the EV sector. While Tesla has made remarkable progress, including the profitable Cybertruck, things aren't looking quite as rosy for the competition. Elon Musk himself has said that removing subsidies could benefit Tesla in the long run as the company proves less dependent on government support.

How arstechnica.com points out, the loss of tax breaks wasn't a big surprise. The last elections showed clear signs against the promotion of clean vehicle technologies. Republicans moved quickly to end incentives intended to encourage the transition to electric vehicles. This is all the more notable given that the Biden administration had previously modified and expanded tax credits through the Inflation Reduction Act of 2022.

Outlook for consumers

What does that mean for buyers? The current developments are expected to influence the sales figures, especially in the months after the tax credit has expired. Industry experts expect a abrupt drop in the number of admission, unless the manufacturers reduce their prices or offer attractive new models. Tesla plans to introduce some affordable models this quarter, which should offer appealing price-performance ratio without a tax credit. A new model around the $ 30,000 could regain significant market shares.

• Aktuell sind die drei günstigsten Elektrofahrzeuge in den USA:
• Nissan Leaf S Trim – $28,140
• Fiat 500e Base Trim – $32,500
• Chevrolet Equinox EV – $33,600

It remains to be seen how the market landscape will develop. What is certain is that the electric vehicle industry is at a critical point where adjustments are necessary in order to be able to exist in the competition. The current developments show that not only technology, but also the right strategy are decisive.

In summary, it can be said that the absence of state support could not only have challenges, but also opportunities for companies such as Tesla. It remains exciting to observe whether these changes result in positive developments.

You can find more information about the changes in the electric vehicle industry at electrive.net.