Under a major tax overhaul passed by the Republican-controlled US Congress late a year ago, incentives in the way of tax credits that lower the cost of electric vehicles are available for the first 200,000 such vehicles sold by an automaker.
Earlier this month, Tesla cut prices on its Model S and Model X after China's finance ministry said it would suspend additional tariffs on US-made vehicles and auto parts for three months beginning in January, lowering the cost of importing US-produced Tesla cars into China for sale.
Tesla's deliveries to European customers appear to be on schedule, Ives said, while adding that China could prove to be a "major growth catalyst" next year following the company's recent price cuts in the country.
Tesla shares increased by 3% in early Wednesday trading, as Wedbush pointed to the company's market potential in the New Year. Tesla cars are now sold in China but those manufactured in the United States will face tariffs that could make them more expensive than any Chinese competitors.
"Many investors are betting that demand drivers around Model 3 production could fade on the high end of the market with a "pull forward" demand effect" in the fourth quarter, Ives wrote. Tesla's capital needs have been an ongoing issue for the company, and Tesla has had to return to the markets several times since it went public in 2010. As if the biggest of the Big Three in Detroit wasn't trying to catch up to Tesla, Elon Musk chose to add insult to injury with a well-worded tweet.
ELON MUSK GIFTED A $37,000 DIAMOND RING FOR “BEING AN INSPIRATION” - israeli diamond
Suppose you placed an order for a new Tesla with the expectation of receiving a significant tax credit.
To start with, Tesla had announced a third price cut in China in two months, reports Reuters.
Tesla released its price for Model 3, with the Model 3 Dual Motor All-Wheel Drive at 588,000 yuan and the Model 3 Performance at 698,000 yuan.
Tesla's course of events for offering the Model Y in China isn't clear. The stock is down 5 percent this year, having closed at $295.39 on Monday.More news: Ole Gunnar Solskjaer sets club record with Huddersfield win
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