Laurence Iliff

Tesla and its divisive CEO, Elon Musk, face safety investigations, shareholder lawsuits and falling favorability among U.S. shoppers. But weak enforcement and price cuts are playing in their favor.

Tesla's decision to slash prices this month has boosted demand, and the automaker cannot make vehicles fast enough. The Cybertruck pickup, however, won't see volume output until 2024.

Tesla's Model Y now starts at $53,490 before fees, keeping it under the $55,000 price cap to qualify for the new EV tax incentive. But two popular options — premium wheels and red paint for $2,000 each — now push it above the price cap.

Tesla is expected to report strong growth in revenue and net income last quarter, but analysts want to hear from CEO Elon Musk on what sharply lower prices will do for demand and gross vehicle margins for 2023 and beyond.

Lucid Motors is rolling out a less expensive trim of its Air sedan and removing content from higher trims to reduce prices.

Tesla price reductions for the bestselling EV in America, the Model Y, represent a discount of $13,000 off the sticker price in addition to eligibility for the new tax incentive of up to $7,500. Shoppers are responding.

VinFast has moved swiftly to lay the groundwork for an EV lineup. But its debut vehicle is taking heat for a $56,700 sticker price and 179 miles of range.

Tesla's price cuts range from 6 percent for the base Model 3 sedan to 20 percent for the Model Y, putting the most inexpensive version of the crossover below the $55,000 price limit for the tax incentive rules that took effect Jan. 1.

Thanks primarily to Tesla and GM, U.S.-made EVs are dominating the U.S. market, Experian registration data shows. New tax incentives will accelerate the trend and bring an influx of battery plants to North America.

Illinois Automobile Dealers Association chief Joe McMahon told that dealers will appeal a court decision that favors the EV makers.

The most popular EV in the U.S., the five-seat version of the Model Y crossover, was left off an early list of vehicles eligible for the new federal tax credit. CEO Elon Musk is asking Tesla fans to write the IRS.

A judge ruled that officials were correct in granting dealer licenses to the EV makers despite objections from the Illinois Automobile Dealers Association, which argued that direct sales by the startups should be halted.

Rivian struggled mightily last year to ramp up its Illinois assembly plant and built just 24,337 units of the R1T pickup, R1S crossover and Amazon delivery van, combined. It delivered just over 20,000 vehicles for 2022.

Rivian, Tesla and Lordstown are trying a clean-sheet approach to what a pickup can be in the electric era.