January 27, 2023

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Tesla offers discount on some car models in U.S., Canada By Reuters

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© Reuters. FILE PHOTO: A Tesla Model 3 is seen in a showroom in Los Angeles, California U.S. January 12, 2018. REUTERS/Lucy Nicholson

(Reuters) – Tesla (NASDAQ:) Inc is offering discounts on Model 3 and Model Y vehicles delivered in the United States and Canada this month, sales pages on its website showed on Wednesday, amid concerns the automaker is facing softening demand as economies slow.

The company is giving a $7,500 credit in the United States and a $5,000 credit in Canada on Model 3 and Model Y vehicles delivered before the end of the year, and also free supercharging for 10,000 miles, the pages showed.

Tesla has been one of the main beneficiaries of the Biden administration’s Inflation Reduction Act (IRA), which offers rebates of up to $7,500 on EV purchases as part of a law intended to push automakers to reduce their reliance on China.

The latest discount comes just days after the U.S. Treasury Department delayed releasing its proposed guidance on the required sourcing of electric vehicle batteries.

Investors are worried Tesla has been facing softening demand. The company in October said it would miss its vehicle delivery target this year, but downplayed concerns about demand after its revenue missed Wall Street estimates.

Earlier this month, news website Electrek reported that Tesla had offered a $3,750 discount on Model 3 and Model Y vehicle delivered in the United States in December.

The U.S. automaker has also given a discount of 6,000 yuan ($860) on some models in China to the end of 2022.

($1 = 6.9761 yuan)

(This story has been corrected to change free supercharging miles in paragraph 2 to 10,000 miles, from 6,000 miles)