Tesla actually raised prices of the Model 3 as their credit was expiring last December.
Very few vehicles (electric, gas, hybrid or whatever) are actually sold at MSRP. Consumers feel it is their right to get a discount, and the manufacturer/dealer model has that factored in. Consumers tend to feel ripped off if they have to pay MSRP (or above) for a vehicle. Studies have repeatedly shown that consumers feel like they paid too much if the dealership doesn't put heavy pressure on them to pay a higher price.
Tesla uses a different model and does not set an MSRP for the year and then vary the discounts and incentives available. They change the price and/or features included multiple times in a year. This has essentially the same result, but seems to make people feel good about paying the "sticker" price with no negotiations possible.
Most people dread going to a dealership to buy a car because of the negotiation aspect and the fear that they will pay too much or not get the best deal possible. I actually enjoy the process. Buying services like Costco Auto have gained in popularity for this very reason. Reality is that you can do as well or very often better on your own, but it takes time and research. Most people just want to feel like they are getting a "good" price, and buying services provide that with little to no effort.
I agree that the Federal EV subsidy is poorly designed, but the opposing sides that want it eliminated altogether vs modifying/extending it likely mean it will stay the same.
