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Elon Musk reacted to a new incentive program by Kia targeting Tesla Inc. (NASDAQ:TSLA) EV owners.
What Happened: On Wednesday, Musk commented on a post by Tesla Investor Sawyer Merritt. Merritt shared news about Kia’s new cash incentive aimed at Tesla owners.
Merritt’s post was about an incentive being offered by Korean car maker, Kia, which is offering up to $1,500 to Tesla owners who switch to a new Kia EV. Musk responded, “But here's the rub, Tesla never has to bribe Kia drivers to buy a Tesla …”
Tesla, a dominant player for over a decade, has seen its market share fall below 50% for the first time. Traditional automakers are attracting customers with newer models.
Kia, part of the Hyundai Motor Group (OTC:HYMTF), is experiencing growth in EV and hybrid sales. To boost sales further, Kia introduced a national Tesla Competitive Bonus Program. This program offers a $1,000 discount on the new EV6 and a $9,000 discount on the larger EV9 for Tesla owners or lessees, according to Cars Direct.
Why It Matters: Musk’s response to Kia’s incentive comes at a time when the electric vehicle market is becoming increasingly competitive.
Tesla has been a dominant force in the EV sector, but traditional automakers like Kia and Hyundai Motor Group are gaining ground. According to data from the Korea Automobile Manufacturers Association, Hyundai and Kia collectively secured 11.2% of the U.S. EV market in the first five months of 2024, a significant increase from their 6.8% share in 2023.
Moreover, Tesla has been employing its own set of incentives to boost sales in various markets. For instance, in China, Tesla offered free supercharging miles to new customers and existing customers who replaced their tires at Tesla-operated service centers.
Additionally, Musk has been vocal about the inefficiency of state EV incentives in the U.S., stating that they are “seldom used” due to a lack of awareness or excessive paperwork.
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Image Courtesy of Tesla, Inc.
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
