American automotive and energy company Tesla has announced it has dropped the price of its Model 3, Model S, and Model X electric vehicles. United States consumers got a $2000 reduction to counter the adjustment of the federal electric vehicle tax credit that took effect at the beginning of the year.
The tax credit varies depending on the size of the vehicle and battery capacity. For Tesla models the credit began at $7500, and every six months halved until being completely phased out. As of Jan.1 the Tesla tax credit is $3750, prompting the company to reduce recommended retail prices to appeal to customers. The price reduction and lower then expected sales predicted by analysts are blamed for causing Tesla shares to fall. At the opening bell at the stock market shares in the company fell more than 8 percent.
