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Tags: alex acosta | tesla | elon musk | china | evs | joe biden

Alex Acosta to Newsmax: Tesla's Price Cuts Linked to Biden's Artificial Demand

By    |   Monday, 22 April 2024 03:03 PM EDT

Former Labor Secretary Alex Acosta told Newsmax on Monday that the reported drop in Tesla's prices is linked to the Biden administration's artificially created demand for electric vehicles.

"Two things are happening," Acosta said during an appearance on "National Report." "One, China is now coming into the market and they are government subsidized, and they're putting in lower price, and possibly lower-quality, goods, which is really going to put pressure on the U.S. electric vehicle market as well as the Chinese electric vehicle market.

"The second thing here is, and we've talked about it so often, the Biden administration, in essence, they pushed electric vehicles, they artificially increased demand by offering a tax credit, but now those individuals that want them, that benefit from that tax credit, they've gotten the tax credit. The effect is done and that artificial demand is disappearing. And so there's an inventory glut."

Citing obligations at Tesla, CEO Elon Musk postponed a planned trip to India this weekend, where he was slated to meet Prime Minister Narendra Modi and announce plans for Tesla to enter the South Asian market, Reuters reported Saturday.

Following price cuts in the United States, Tesla slashed prices by nearly $2,000 across its models in China, as it contends with a drop-off in sales and cheaper Chinese electric vehicles.

The starting price of the revamped Model 3 in China was cut by 14,000 yuan, or $1,930, to 231,900 yuan, or $32,000, according to Tesla's official website on Sunday.

Similarly, Musk's EV manufacturer cut the starting price on the Model Y to 249,900 yuan, as well as the regular version of the Model S to 684,900 yuan and the Model S Plaid to 814,900 yuan. The regular Model X's price was dropped to 724,900 yuan and the plaid Model X to 824,900 yuan.

On Friday, Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000, while the price for its Full Self-Driving driver assistant software tumbled on Saturday from $12,000 to $8,000 in the U.S.

The car maker reported this month that first-quarter global vehicle deliveries fell for the first time in almost four years, as price cuts failed to incite demand among consumers.

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Nicole Wells

Nicole Wells, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.

© 2024 Newsmax. All rights reserved.


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Former Labor Secretary Alex Acosta told Newsmax on Monday that the reported drop in Tesla's prices is linked to the Biden administration's artificially created demand for electric vehicles.
alex acosta, tesla, elon musk, china, evs, joe biden
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2024-03-22
Monday, 22 April 2024 03:03 PM
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