GM sold 200,000 electric vehicles in US, Tesla cuts price

GM

General Motors (GM) announced that it sold 200,000 electric vehicles in the United States by the end of 2018.

The 200,000 figure covers GM’s cumulative EV sales since 2010.

Tesla earlier announced that it hit the 200,000 figure in July 2018.

GM and Tesla have both lobbied US Congress to lift the cap or extend the existing tax credit. Tesla’s EV tax credit fell to $3,750 on Tuesday and Tesla said it was cutting prices on its EVs by $2,000 to partially offset the lower tax credit.

In March, GM Chief Executive Mary Barra called on Congress to expand the consumer tax credit for electric vehicles as the company boosted production of the EV Bolt in response to consumer demand.

GM said in November it was doubling resources allocated to developing electric and self-driving vehicles as part of a significant restructuring that includes ending production at five North American plants. GM also announced it would halt production of the plug-in hybrid Chevrolet Volt by March.

In November, a congressional report said 57,066 taxpayers claimed $375 million in EV tax credits in 2016. Congress estimates the cost of the EV tax credit at $7.5 billion between the 2018 and 2022 fiscal years.

Tesla cuts car price

Meanwhile, Tesla announced on Wednesday cut U.S. prices for all its vehicles to offset lower green tax credits.

Analysts questioned whether the $2,000 price cut on all models signaled lower demand in the United States, and ultimately whether the move would undermine nascent profitability at the Silicon Valley automaker, which has never posted an annual profit.

The company said it would begin delivering Model 3s to Europe and China in February.

The price cut of $2,000 beginning on Wednesday will be on the Model 3 – as well as on its higher-priced Model S and Model X.

The lower price comes as automakers expect U.S. new vehicle sales to weaken in 2019, and amid increased competition from new electric vehicle entrants. Tesla sales benefited from a $7,500 federal tax credit on electric vehicles throughout 2018, but that full credit expired at the end of 2018, and new buyers will now receive only half that amount.

Tesla delivered 63,150 Model 3s in its fourth quarter. Overall, total production rose 8 percent to 86,555 vehicles. The company churned out 61,394 Model 3s, up from a total of 53,239 Model 3s in the third quarter.