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Tesla is offering a rare $3,750 discount on Model 3 & Model Y cars for US customers who take delivery in December

Business Insider logo Business Insider 12/2/2022 sdelouya@insider.com (Samantha Delouya)
Tesla © Tesla Tesla
  • Tesla is offering a rare $3,750 discount on Model 3 and Model Y vehicles until 2023. 
  • The price cut comes as many customers delay delivery into next year in anticipation of a $7,500 EV tax credit. 
  • Last quarter, Tesla delivered fewer cars than experts had expected. 

Tesla is offering a $3,750 credit to US customers on Model 3 and Model Y cars until the end of the year. 

It's a rare move for the automaker, whose CEO, Elon Musk, has often said that Tesla wouldn't discount new cars.  

According to a report by Electrek, which cites sources familiar with the matter, Tesla has seen an uptick in order cancellations due to long delivery wait times, leading some customers to change their minds about a car purchase between the time they placed car orders and the date of delivery. 

The report also said that some customers are pushing electric vehicle deliveries into the start of 2023 to take advantage of the Biden Administration's new EV tax credit. 

The credit, which takes effect in 2023, is part of the Inflation Reduction Act signed by President Biden in August and extends current federal tax credits. The credit is worth up to $7,500, and Tesla's Model 3 & Model Y are both eligible beginning in 2023. 

By trying to push new vehicles out the door by the end of the fourth quarter, Tesla may be looking to avoid another disappointing quarter of deliveries. In the third quarter, Tesla reported delivering 343,000 electric cars, falling short of analysts' expectations of 364,660 deliveries. 

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