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‘23 tax credit, will Tesla offer discounts in ‘22?

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Got a link? I couldn’t find anything.

The closest I could find was a quite in this article, but it’s vague and speculative, and definitely doesn’t definitively state that Teslas will get the full credit in 2023:

“Tesla allows the public to vote on questions its executives should answer. The most highly voted question asked about Tesla's ability to meet thresholds for the electric vehicle tax credits in 2023, 2024 and 2025.

Tesla did not address specific years, but Musk said that ‘at a high level I'll say we do expect to fully meet the IRA's requirements.’ "

Tesla CEO Elon Musk said during the company's third-quarter earnings call on Wednesday evening that the company expects to fully meet the Inflation Reduction Act requirements that would allow consumers to receive tax credits on new EV purchases

 
Agreed.
Sadly I was in the boat of having an EDD in December that got moved up. Despite my best efforts, tesla just cancelled my order. I’m disappointed in how callous they are. I had expected they’d figure out some way to deal with the tax credit at end of year. Extra deposit. Parking fee. But they didn’t try at all. Overly arrogant assuming demand will always be there.

Did they give any warning before cancelling?
 
Did they give any warning before cancelling?
I’ve been canceled on a different order for a different reason- warning was minimal and cancellations are irreversible from what I know. I’ve also been warned for another order about cancellation unless I took delivery- the price was substantially below current- so I took delivery, without any regrets.

I assume his warning was something like ‘take delivery or we’re canceling your order’. Unfortunately these are not idle threats- with all the inflation many older orders are below current prices so they have an incentive to cancel. I guess they're assuming future demand will be robust enough.
 
Tesla CEO Elon Musk said during the company's third-quarter earnings call on Wednesday evening that the company expects to fully meet the Inflation Reduction Act requirements that would allow consumers to receive tax credits on new EV purchases


I think everyone here knows that Elon often says things that he expects to happen that ultimately don’t (and that he should’ve known full well wouldn’t happen at the time he said it). And given how vague his statement is, and how carefully crafted the CFO’s clarifying follow-up statement is, I wouldn’t bet much on it. But I hope he’s proven right in this case.

Anyway, for those interesting, here’s the relevant part of the transcript from the Q3 ‘22 earnings call (with some emphasis added):

The first shareholder question is given the stringent battery content and assembly requirements for consumer tax credit eligibility under the Inflation Reduction Act. Can you speak to Tesla's ability to meet those thresholds in each of 2023, 2024, and 2025 through your existing and planned supply chain?

Elon Musk

Well, yeah, I mean I think just at a high level, I'd say, we do expect to fully meet the IRA's requirements. Do you want to add?

Zachary Kirkhorn -- CFO

Yeah. We view that passing of the Inflation Reduction Act as a significant boost toward accelerating our mission, while also scaling the battery supply chain at large in the United States. We expect Treasury to publish detailed guidance by the end of the year. Until such time, it's difficult to fully determine the eligibility criteria, but we believe Tesla is very well-positioned to capture a significant share of that for solar storage and also electric vehicles.

Elon Musk

Yeah, I'd like to say, we're -- like I said earlier, we're going to go basically pedal to the metal as fast as humanly possible to get to 1,000 gigawatt hours a year of production in the U.S. vertically integrated.”
 
Tesla is now giving a $3750 discount on December deliveries.


Could be a sign that they only expect to qualify for a $3750 tax credit in 2023.
 
Tesla CEO Elon Musk said during the company's third-quarter earnings call on Wednesday evening that the company expects to fully meet the Inflation Reduction Act requirements that would allow consumers to receive tax credits on new EV purchases

Tesla is now giving a $3750 discount on December deliveries.


Could be a sign that they only expect to qualify for a $3750 tax credit in 2023.
I guess I called it. It wasn’t rocket science to figure out that this would happen. For those criticizing Tesla for making this move, personally I give them a pass since this is a one-time situation.

I do wonder how many existing orders taking delivery this month already have lower pricing than current- if so they’re getting a good deal.
 
I guess I called it. It wasn’t rocket science to figure out that this would happen. For those criticizing Tesla for making this move, personally I give them a pass since this is a one-time situation.

I do wonder how many existing orders taking delivery this month already have lower pricing than current- if so they’re getting a good deal.
I am in $3,000 less than current. I'm surprised but pleased to see this discount. Now I'm hoping to take delivery this month rather than try and delay it.
 
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I guess I called it. It wasn’t rocket science to figure out that this would happen. For those criticizing Tesla for making this move, personally I give them a pass since this is a one-time situation.

I do wonder how many existing orders taking delivery this month already have lower pricing than current- if so they’re getting a good deal.

You did (call it).

I admit freely that when I saw this thread, I said to myself (Tesla has no reason to do that, I doubt they will). I also thought "now that they are letting people push their orders out to the original scheduled date, in December that date is going to be into january, what are they going to do to entice people to take delivery of those cars now, rather than later?"

I didnt think they would do this, though. I thought they might offer upgrades (wheels, color, etc) like they did before, or even something like "take delivery now and get a years worth of FSD subscription free!" or something like that (note that was just me speculating, not because I read, or otherwise heard about something like that).

You definitely called it, though. Nice job.
 
You did (call it).

I admit freely that when I saw this thread, I said to myself (Tesla has no reason to do that, I doubt they will). I also thought "now that they are letting people push their orders out to the original scheduled date, in December that date is going to be into january, what are they going to do to entice people to take delivery of those cars now, rather than later?"

I didnt think they would do this, though. I thought they might offer upgrades (wheels, color, etc) like they did before, or even something like "take delivery now and get a years worth of FSD subscription free!" or something like that (note that was just me speculating, not because I read, or otherwise heard about something like that).

You definitely called it, though. Nice job.
As an investor, I wouldn’t have minded being wrong but I also don’t think this is a huge deal for the financials in the big picture.

Despite the discount , I plan to leave my order on hold for personal reasons. At least we can reasonably confirm that MY will qualify for half the credit, although I was hoping for the whole $7500.
 
As an investor, I wouldn’t have minded being wrong but I also don’t think this is a huge deal for the financials in the big picture.

Despite the discount , I plan to leave my order on hold for personal reasons. At least we can reasonably confirm that MY will qualify for half the credit, although I was hoping for the whole $7500.
But, the $3,750 discount is immediate, while the tax credit wouldn't be received until Mar/Apr 2024.
 
Tesla is now giving a $3750 discount on December deliveries.


Could be a sign that they only expect to qualify for a $3750 tax credit in 2023.
Some seem to think this is only on inventory cars. Hope not.
 
Some seem to think this is only on inventory cars. Hope not.
This is on all cars delivered, inventory or existing order. Many confirmed in the other thread they are already getting a discount even if they had picked up on Dec 1st. Even if they prepaid but not picking up till later in December.

This is a super sweet for those with March orders (many yet fulfilled but mostly scheduled in the next few weeks) that were before 1, 2 or 3 price increases. That could be $7K lower than current + this $3750....that is going back to 2021 prices for those lucky people who IMO deserve it for waiting this long.
 
as a policy, tesla does not offer discounts. unless it is a demo car, etc. it was once explained as "you had better be prepared to explain to the next person why someone else got a discount and they didn't"

Tesla has discounted new order cars in the past, just in a slightly different way. As one example, the base price of a new Model S was lowered a few times in 2020, going from $79,990 at the beginning of the year to $69,420 by the last quarter. These price reductions were comparable to giving a discount.
 
Does anyone know if EV suv/trucks over $80k will qualify for tax credit in ‘23, assuming base model is under $80k?

Current Model Y pricing, for example,
is such that certain configurations are below $80k and others are above. How will the law treat this scenario, which I assume is common for other comparable vehicles? Anyone have any insight from reading through the IRA or other source of info?
 
Does anyone know if EV suv/trucks over $80k will qualify for tax credit in ‘23, assuming base model is under $80k?

Current Model Y pricing, for example,
is such that certain configurations are below $80k and others are above. How will the law treat this scenario, which I assume is common for other comparable vehicles? Anyone have any insight from reading through the IRA or other source of info?
It will not. The msrp is what counts, so that’s the price after options/upgrades.

So if you want all options, including fsd…. Best to add the software upgrade after delivery, when the msrp is already set in stone on all the paperwork
 
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It will not. The msrp is what counts, so that’s the price after options/upgrades.

So if you want all options, including fsd…. Best to add the software upgrade after delivery, when the msrp is already set in stone on all the paperwork
The problem is my locked-in fsd price is lower than current so if I add after delivery, it will cost more and negate most of the tax credit.

The CVRP program in California has an msrp limit too but isn’t affected by add-on options from what I know. I’m hoping ftc will be structured similarly but maybe not.

I wonder if Tesla will somehow revamp pricing starting with the new year to account for ftc msrp limits.

The lame duck Congress or Biden might revise the whole thing this month but who knows??
 
Got a link? I couldn’t find anything.

The closest I could find was a quote in the article linked below, but it’s a vague and speculative comment, and certainly doesn’t definitively state that Teslas will get the full credit in 2023:

“Tesla allows the public to vote on questions its executives should answer. The most highly voted question asked about Tesla's ability to meet thresholds for the electric vehicle tax credits in 2023, 2024 and 2025.

Tesla did not address specific years, but Musk said that ‘at a high level I'll say we do expect to fully meet the IRA's requirements.’ "

Tesla is giving a sales credit of $3,750 for any M3 or MY delivered in December 2022.
With the tax credit, make sure you are going to have a tax debt otherwise it does no good. This is a tax credit, not a tax refund. If you owe no federal taxes in 2024 you will get nothing. If you owe $3,000, the amount owed will be zeroed out, but that's it. (Assuming you qualify for $3,000 credit)