Following the substantial price cuts last week, Tesla (TSLA) is experiencing “unprecedented demand” in the United States. Many stores are breaking records, and inventories are running low.
Last week, Tesla announced colossal price cuts of up to $13,000 on Model 3 and Model Y vehicles in the United States.
Normalization of cost inflation
The automaker attempted to justify the price cuts as a “partial normalization of cost inflation”; however, most industry analysts agree that Tesla required the price cuts to generate demand.
According to sources familiar with the situation, many Tesla stores in North America broke a new record for sales in only one week.
According to a source familiar with Tesla’s sales, the company faces “unprecedented demand” in North America due to the price cuts.
Tesla experienced a similar response in China following price cuts.
Tesla’s inventory is now low
Inventory is falling at an all-time low across several key US markets. As for newly designed orders, Tesla will likely need more construct slots for the North American market in the coming days.
That usually occurs much later in the quarter.
Tesla models are eligible for the tax credit
In addition to immediate price cuts, many Tesla models are now eligible for the new $7,500 federal tax credit for electric vehicles in the United States.
In some cases, this decreases the cost of some Tesla vehicles by up to 30% compared to the previous year.
