>Do you think those tariffs makes Tesla prices go up or down? It would certainly make the price of a Tesla go up. >Why do retailers offer coupons? The decrea

>Do you think those tariffs makes Tesla prices go up or down? It would certainly make the price of a Tesla go up. >Why do retailers offer coupons? The decrease in price results in an increase in demand for the product. This is very beneficial for manufacturers who need to keep the rate of production consistent all year long while demand for their product may fluctuate. > How do they set their prices when coupons are "always available"? The increase in demand from the decrease in price due to the coupon or subsidy balances out, so the price without the coupon/subsidy remains the same. The effect of the coupon/subsidy is strictly to increase the demand, it doesn't allow the manufacturer to charge a higher sticker price. >and prices on all EVs - the cars that qualify for the benefit and those that do not - have risen Except there's a way to test for this and it isn't consistent with your expectation. Tesla along with pretty much all car manufacturers charge the same amount for an EV in places that offer an incentive such as California versus places that don't, such as Texas. Based on your logic a Tesla should be more expensive in California, which offers a $7500 credit compared to Texas. But that's not the case.