now in a bit to navigate through uncertain times Tesla CEO Elon Musk is making a bold move to cut electric car prices again setting the stage for potential sales acceleration exactly a key factor driving Tesla's aggressive pricing strategy is the general generous support from the Biden Administration tax credits for battery manufacturing under the inflation reduction act Ira provides Tesla with a distinct advantage over Rivals now these credits combined with other subsidies offset much of the recent price reduction on the popular model why now the combination of Tesla's Dynamic discounting approach and government subsidies has already shown promising results second quarter U.S sales have surged by 35 compared to the year prior the company is CFO expects substantial quarterly revenue from Battery credits as Tesla ramps up production as well Tesla is the biggest beneficiary of battery production credits under the IRA it produces batteries with supply of Panasonic in Nevada and is increasing output at its own Texas plant while investors may have concerns about Tesla's margins the Electric Vehicle Manufacturer remains at the Forefront of the industry [Music] thank you
