Part 3/11:
When the bill's details were finalized and announced in early July, the market noticed a dramatic spike in U.S. EV demand. Consumers rushing to secure the tax credit led to a "pull-forward" effect: a significant portion of Q3's expected sales were brought forward into the current quarter to capitalize on the incentive.
This demand spike posed a challenge for Tesla. Launching a new affordable model during such a demand surge would be counterproductive. Why? Because the immediate boost in demand for existing models (Model Y and Model 3) would overshadow the impact of a new model, which might cannibalize current sales or be overshadowed by the rush to buy pre-incentive vehicles.