Tesla. We are a well-known electric car manufacturer, and have been experiencing various market changes. Our company is keen to understand how these changes impact the market equilibrium for our vehicles.
a) Recently, a new environmental regulation was passed that offers significant tax incentives to consumers who purchase electric vehicles (EVs). As a result, there is a growing consumer preference for EVs over traditional petrol cars. How might this impact on the demand for our vehicles? Explain.the total number of words added up to the two questions is less than 100 words
The new environmental regulation providing tax incentives for EV purchases will likely boost demand for Tesla vehicles. By reducing the effective cost for consumers, it makes EVs more attractive compared to petrol cars, thus increasing the demand for Tesla's electric vehicles.
