Tesla (TSLA) has introduced a new strategy to boost demand for its electric pickup truck, Cybertruck. These vehicles are now available for lease in the U.S. with monthly payments starting at $999, making them more accessible to potential buyers. The leasing option was introduced after Tesla addressed much of its Cybertruck order backlog.
Importantly, the Cybertruck has gained traction in the U.S. market. During its third-quarter earnings report, Tesla revealed that the Cybertruck was the third-best-selling EV in the country during that period.
IRA Tax Credits Enhance Cybertruck’s Appeal
Investors should note that the Inflation Reduction Act (IRA) provides significant tax credits for EVs, including those leased. Interestingly, the government’s subsidy list shows that Cybertruck qualifies for the $7,500 commercial vehicle tax credit. As a result, the potential tax credits, combined with the Cybertruck’s availability on lease, may boost its appeal among buyers.
However, it is also important to mention that the future of these tax credits is uncertain. The Trump administration may introduce changes to the IRA that could affect the availability of these incentives.
Given this uncertainty, consumers interested in buying or leasing a Cybertruck may want to act quickly to take advantage of current incentives.
Is TSLA a Buy Now?
Turning to Wall Street, TSLA has a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells assigned in the last three months. At $207.83, the average Tesla price target implies a 35.3% downside potential. Shares of the company have gained about 86.88% in the past six months.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
