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HomeMarketTesla Is Offering $3,750 Off a New Car. It Won't Last.

Tesla Is Offering $3,750 Off a New Car. It Won’t Last.

U.S. car buyers can get $3,750 a Tesla Model 3 if they act fast.

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Allison Dinner/Getty Images

Tesla
is offering U.S. car buyers a rare discount. That could signal weakening demand, but it is probably a smart move considering what is about to happen in January.

Tesla
‘s website now includes the offer “take delivery of a new Model 3 or Model Y in December 2022 for a $3,750 credit.” Tesla (ticker: TSLA) vehicles are on sale for a month.

Tesla doesn’t really do haggling or offer incentives like traditional car companies.

The reason for the discount appears to stem from the EV purchase tax credits that were included in the Inflation Reduction Act. Most Tesla vehicles should qualify for a $7,500 credit starting on Jan. 1, which could be a reason to delay buying. A buyers’ strike headed into the end of the year could lead either to production slowdowns at Tesla’s Fremont, Calif., facility or inventory piling up, or both.

The $3,750 is half of the maximum tax credit, but the amount seems to make sense. Not all Tesla vehicles qualify for a subsidy; there are various requirements including vehicle cost to qualify for the tax credit. The company seems to be splitting the difference.

Tesla didn’t respond to a request for comment about its pricing strategy.

Tesla stock isn’t reacting to the discount, a sign that either investors are on board with the strategy or that they aren’t aware of it. Shares were up about 0.3% in afternoon trading Thursday. The
S&P 500
and
Dow Jones Industrial Average
were down 0.2% and 0.7%, respectively.

Any change in delivery volume between months due to government incentives should be a short-term issue for investors. They won’t matter in the long run.

Car buyers are the ones who can derive a real benefit. They can score a deal.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

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