The price cuts that Tesla operated in January are still taking a toll on legacy carmakers, as car dealers find it more challenging to sell new EVs. Although the demand for new cars is still strong, dealers sell electric and hybrid vehicles at a discount while marking up ICE models.
It's hard to be a legacy carmaker these days, as Tesla is turning up the heat with deep discounts and other incentives. The IRA tax credit is another reason some electric vehicles are not selling as fast as dealers wanted. This has put pressure on them at a time when demand for cars has slowed, mostly because of inflation, high interest rates, and employment concerns.
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