Tesla Expected to Report Strong Fourth Quarter Deliveries Amidst Growing Competition in Electric Vehicle Market
Tesla, the leading maker of battery electric vehicles, is set to report its fourth quarterly deliveries on Tuesday morning. This comes as the company faces increasing competition from Chinese carmakers in the electric vehicle market. A disappointing third-quarter result, Wall Street analysts expect Tesla to report deliveries between 475,000 and 480,000 units.
The US Treasury has announced that many electric vehicles, including the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, and some Tesla Model 3s, are no longer eligible for tax credits of up to $7,500. This is due to new battery sourcing rules that took effect on Monday, aimed at reducing reliance on China in the electric vehicle supply chain. The number of EV models qualifying for the tax credit has decreased from 43 to 19, with the possibility of further changes as some manufacturers have yet to submit information on eligible vehicles.
These changes, Tesla remains optimistic about its future in the electric vehicle market. The company stated on its website that the Cybertruck is likely to qualify for the federal tax credit in 2024. Other carmakers, such as Volkswagen and BMW, are also working to meet the new requirements and regain eligibility for the tax credit.
The 2022 Inflation Reduction Act law has reformed the EV tax credit, requiring vehicles to be assembled in North America to qualify. This has eliminated nearly 70% of eligible models, including some of Tesla’s own vehicles. The company remains confident in its ability to adapt and continue to thrive in the market.
