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Tesla attempts to backtrack with new incentives and discounts as sales plummet: 'Truly pulling all demand levers'

"This is not a great sign for Tesla."

"This is not a great sign for Tesla."

Photo Credit: Depositphotos.com

When many people think of electric vehicles, they think of Tesla

However, Tesla's brand image has taken some hits recently as CEO Elon Musk has been active in American and global politics, polarizing consumers, who have more options than ever to choose from on a robust EV market.

According to Yahoo Finance, the first three months of 2025 were Tesla's worst quarter since the second quarter of 2022. With dropping sales, Tesla has worked on incentivizing consumers to buy its cars. 

The perks, detailed by Electrek, include discounts for a variety of customers, credit opportunities for Lyft drivers, and subsidized interest rates. 

One commenter noted that the company is "truly pulling all demand levers."

"I am being contacted by Tesla representatives asking if I would like to come in and take a test drive so it appears Tesla Advisors are being asked/told to reach out to anyone who showed interest in Tesla in the past," they added. "I will say Tesla has improved the quality of the Model 3/Y greatly and the service is very good in my area so it saddens me when I think the CEO has done so much hurt the hard working Tesla employees globally by his actions (with zero accountability)."

This all comes in the wake of Tesla benefiting as the sole exemption from a large automotive tariff, since it is the only automaker at this time that meets the required criteria.

Ultimately, EVs (regardless of brand) remain a great choice for someone interested in cutting down on fuel consumption. EVs are great choices for environmental purposes. The cars do not emit any pollutants while running and account for less overall pollution when considering other factors.

While some EV opponents note that mining the materials to create the batteries is bad for the environment, the mining processes are getting more efficient, and battery technology is advancing to last longer. It is also less polluting than harvesting dirty fuels.

There are also financial benefits to driving an EV. For one, you can save a lot of money charging your car compared to filling it with fuel at the pump. According to the Southwest Energy Efficiency Project, this could be around $1,000 per year. 

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You can further those savings (and slash potential charging pollution) by using solar to power your vehicle, and EnergySage's free tools can help you save up to $10,000 on installation. They allow you to compare quotes from vetted local installers to save the most money possible. 

You can also still get tax credits from purchasing an EV through the Inflation Reduction Act. However, the Trump administration is considering eliminating these benefits. If you want to take advantage of the tax breaks, you may have to act soon. 

While Tesla's sales are down in the United States, overall EV sales have been increasing. All in all, Electrek suggests the influx of incentives from the automaker has ominous undertones.

"This is not a great sign for Tesla," Electrek wrote. "These are end-of-quarter level incentives when we are just about halfway through the quarter."

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