Tesla Delivers 245,240 Vehicles In 2018, Reduces Pricing By $2,000

Tesla Model 3 1 photo
Photo: Guido ten Brink/SB-Medien
After announcing that it’ll cover the federal tax credit difference on cars not delivered before 2019, Tesla started the year with the proverbial bombshell. More to the point, 2018 sales exceed everyone’s expectations, with Tesla racking up 245,240 deliveries.
The fourth quarter is impressive in its own right, accounting for 90,700 vehicles. Of these deliveries, 63,150 were Model 3 sedans, representing a growth of 13 percent over the third quarter of the year. Throughout 2018, the Model 3 outsold the Model S and Model X by a considerable margin.

No fewer than 145,846 examples of the breed were delivered, with 1,010 units in transit at the end of the fourth quarter. Tesla makes a case for inventory levels that are “the smallest in the automotive industry,” which goes to show the competition has a lot of catching up to do.

As the headline suggests, Tesla is also operating a price reducing in the United States as of January 2019 because the federal tax credit was reduced from $7,500 to $3,750. Customers “may also be eligible for several state and local electric vehicle and utility incentives, which range up to $4,000.”

Even though it’s riddled with issues as a consequence of accelerated production, the Model 3 was “the best-selling premium vehicle in the U.S. for the full year.” Tesla highlights that U.S. sales of the cheapest model in the lineup are “double those of the runner-up.”

A stellar finish to 2018 and encouraging news for 2019, Tesla appears to understand that the halving of the federal tax credit is a matter of life and death in the business of selling electric vehicles. After all, no automaker would reduce the price of its entire lineup by $2k when sales are better than ever.

On the other hand, the net effect of the reduction translates to a $1,750 increase for the consumer. Looking at the matter from a different perspective, some people have $3,750 or less tax liability, thus making the price cut far more relevant than the $7,000 federal tax credit operated before 2019.

Lowering the MSRP for the 3, S, and X further translates to tax cuts and registration fee drops in various states, along with lower insurance. Last, but certainly not least, a lower retail price makes it easier to access a loan and lower monthly payments.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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