Tesla Makes One Headline After Another Making Huge Announcements, Stocks Trade High

The share prices for Tesla have moved in the upward direction in the Monday trading session. The surge was because of another major announcement made by the electric vehicle manufacturer.

The company has been making several announcements that have made it one of the most demanded and highly traded companies in the stock market.

Investors have been investing heavily in the EV maker, making it one of the most attractive stocks in the year 2023.

Recent Share Price Surge

The reason behind the latest share price surge for Tesla was because of the company making a huge announcement pertaining to its car costs.

The EV maker has reportedly made adjustments to the price for the Model Y vehicles. The company made the announcement of lifting the prices for Model Y vehicles after the threshold increment announcement by the US government.

The government of the United States announced that the climate-linked tax credits eligibility threshold would be removed for crossover vehicles.

Tax Credit Eligible Vehicles

According to the government of the United States, vehicles valued at less than $80,000 would be eligible for the tax credit. In this particular scenario, the tax credit would be worth $7,500.

Due to the government’s announcement, Tesla has reportedly lifted the prices of particular vehicles. They have reportedly increased the prices of their Model Y Long Range vehicles.

According to the latest reports, the hike is of $1,000, pushing the particular vehicle prices to $54,990. Despite the hike, the company still has a lot of room to make additions to components and software.

The buyers can have those options added to their vehicles and still be eligible for the $7,500 tax credit.

Then comes the Model Y Performance. The company has increased the price for the particular model as well. However, they have increased it by $1,000 as well, pushing it up to $57,990 for each vehicle.

Historic Deliveries in January 2023

Elon Musk, Tesla’s CEO also had a very promising update to share with the shareholders and the customers. He revealed that so far, their deliveries have been historic in the month of January.

This is a huge achievement for their company and it has set them on the right track to meet their annual delivery target.

He confirmed that the delivery numbers they touched in the month of January are the highest they have hit in any month in the past.

Musk has predicted that their target for the year 2023 for deliveries is two million. As things are going in favor of Tesla, it can be expected that the company will hit the wished target.

He revealed that the delivery orders they received in January are more than twice the overall production they carry out across the globe.

Due to the January developments, Tesla is able to cover the losses that it had to incur due to the price cuts it introduced in the year 2022.

Previous Tax Credit Threshold

Previously, the threshold for the tax credits was set to $55,000 by the government of the United States. However, as the Treasury released the guidance for the year 2023, the threshold was pumped.

This has worked in favor of Tesla, which is cashing it in to increase its deliveries and orders.

Ever since the announcement, the share prices for Tesla have surged significantly in the latest stock market session. The report suggests that the share prices for Tesla have surged 2.5% in the stock market.

Following the surge, Tesla’s shares have started trading at a high of $194.83 per share. So far, the company’s shares have been pushed significantly.

The year 2023 is turning out to be full of gains for Tesla shares. From the beginning of the year until now, the share prices for Tesla have surged by 80.25%.

Given the growth the company is witnessing, its shares may continue moving higher in near future.