Tesla gives rare holiday discount to December buyers, seeks to boost final sales

Following a tumultuous year for EV automaker Tesla, the company has slipped a rare holiday discount into customer’s end of the year orders.

The offer includes a $3750 rebate for Model 3 and Model Y purchases this month, despite the company’s long standing policy against promotional sales. The automaker has yet to give an explanation for the departure from form.

While Tesla is far from desperate, it is possible that executives believe the holiday discount is necessary to cushion the impact of arguably the most complicated year in the brand’s history. In 2022 the company saw a host of controversies, from workplace safety concerns at one of its Texas facilities, to CEO Elon Musk’s purchase of Twitter. The brand’s stock performance was equally tumultuous, falling from its all-time-high share price of $409.97 last November to a two-year low of $167.87. Predictions from market analysts have increasingly painted an unclear future for the brand, with some groups such as S&P Global predicting a market share shrinkage from 65% to 20% within the next three years.

The holiday discount is likely targeted at customers who have put off their vehicle purchases as a result of promised tax incentives in the Biden Administration’s Inflation Reduction Act. Under the new legislation, buyers will be able to obtain a $7,500 EV tax credit on Tesla vehicles starting in 2023, giving many a reason to delay their purchases until the rule takes effect. However, the automaker’s offer would allow drivers to receive their rebate in December, ahead of tax season, which many entice those looking for extra gift money this holiday season.

Eligible customers are likely to rejoice at the unexpected holiday discount, although it remains unclear why Tesla has temporarily abandoned its anti-sale policy. However, if competition in the EV space continues to increase and the brand’s leadership fails to calm public sentiment in response to its controversies, discounts may become a common fixture in the automaker’s sales strategy.

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