What is the current assessment of the likelihood of Tesla vehicles again qualifying for the the $7,500 US federal government tax credit or possibly $10,000 if including made in America provision? What purchase/pickup date would one have to have to qualify for the credit? I've seen various thoughts on whether that would be retroactive to late May, the date the legislation passes, or not until January 1, 2022. Assuming it could go into effect in July/August (passing this summer) why would anyone be purchasing a car now unless literally have nothing else to drive, his or her tax liability won't require the credit, certain it will take months to get the car with the increased demand the credit will drive, and/or Tesla will generally raise the price to offset much/all of the credit? I am currently in the 8 - 12 week window (placed M3 order at end of May) and want the car now but can't imagine my frustration if I had waited a couple of weeks/month and would have had a massive tax benefit.
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2021 EV Tax Credit
- Thread starter DLK1974VA
- Start date
There could still be a non-insignificant number of people willing to delay their delivery if it means being able to collect the new EV credit next year. Then again, probably wouldn't be too much of an issue getting people to scoop up declined units. But still possible that the delay requests could make a material impact to the bottom line 4th quarter.
Maybe some kind of one-time incentive (1 year free Supercharging, free FSD+ Premium connectivity for X months....something like that). to entice people to keep their Dec delivery.
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I guess Tesla could also take a punitive approach towards people that delay their Nov/Dec deliveries ("OK, if you postpone, you are going to the very end of the queue"). For people with 3 LR/P orders, probably not much of a threat, but for people with Y LR/3 SR+ orders, that could mean months more of waiting.
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t.e.s.l.a_dude
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There seem to be enough people who either do not care about the credit or who planned to have a new car before Dec 31. So I guess demand is there and there should not be a problem for Tesla.
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If they are going to do something punitive I think it would be related to this clause in the order agreement:
So, take delivery or have your order cancelled. (And if your order is an "old" one you would lose your "discounted" price.)
Or they could go the other route, like they have in the past, and offer 3 months of FSD for free, 1 year of free Supercharging, etc.
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No way they give away FSD for free. I could see a 6-12 month sub giveaway though.
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Hike the price several more times before Dec, then drop it $1k in Dec and everyone will freak out about how great a deal the new price is. Lol
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I think if they really are concerned about missing deliveries for 2021 (and maybe they won’t care), then they’ll have to do something significant like free FSD. Saying to somebody “well, if you wait a month you’ll save $10,000 but if you take it right now we’ll give you $1000” isn’t going to cut it.
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Thinking about it more, free FSD would cost Tesla basically nothing to "give" away (and with the take rate so low, not really forfeiting that much future income). Could very well be something in their toolbox to pull out.
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Right. What’s going to cost them more money, losing a ton of 2021 deliveries or flipping a software setting to give people FSD? I don’t know what their current margins are but if we assume there’s not much margin in the parts and labor cost then it’s unlikely they would lower the actual vehicle price to incentivize 2021 deliveries. Seems like it’s better for them to get the same cash and just give away some software.
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Is anyone here an accountant that could help with this question?
I am expected to pick up my MY in mid-December. Would it be possible to accept my payment in December, accrue it on their books, and forward date the invoice date to January 1st? I am not sure if this is entirely legal or US GAAP compliant, but if we could find a way to deliver vehicles, keep the payment on their books, and still allow me to obtain the 2022 EV tax incentive, it could be a win-win. Even if they added some finance charges (like a rent-to-own scenario), I would still take it in a heartbeat. They would be able to show a significant increase on their balance sheet that will be recognized in Q1 that should satisfy Wall Street concerns.
But as I mentioned, I am not sure if this practice would be permitted by Uncle Sam nor whether Tesla would want to take on the additional administrative burden albeit temporarily.
I am expected to pick up my MY in mid-December. Would it be possible to accept my payment in December, accrue it on their books, and forward date the invoice date to January 1st? I am not sure if this is entirely legal or US GAAP compliant, but if we could find a way to deliver vehicles, keep the payment on their books, and still allow me to obtain the 2022 EV tax incentive, it could be a win-win. Even if they added some finance charges (like a rent-to-own scenario), I would still take it in a heartbeat. They would be able to show a significant increase on their balance sheet that will be recognized in Q1 that should satisfy Wall Street concerns.
But as I mentioned, I am not sure if this practice would be permitted by Uncle Sam nor whether Tesla would want to take on the additional administrative burden albeit temporarily.
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Would it be possible to accept my payment in December, accrue it on their books, and forward date the invoice date to January 1st? No, this is not permissible.
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Why would you think they'll lose a ton of 2021 deliveries? There's a huge backlog and alot of people who need a car now will jump the queue on those who deferred.
I'm not convinced that tesla will lose out on q4, unless i start to see inventory cars build up on their site. Pre covid, there used to be a lot, now there's none, a trickle if any, and those get scooped up.
And since they have a subscription model, if anything it'll be like x months free and not FSD free forever, in my opinion. Don't get me wrong, I'd like free FSD as well, lol
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I doubt it. It’s in their interest to leverage the credit to sell more cars. If they just raise the price to essentially keep the car the same price to the consumer then the credit won’t really help anybody.
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I just think if they have X number of cars set for delivery through the end of the year then they are definitely going to take a beating on deliveries if everybody starts seeing on the news that if you wait until 1/1 you will save $10k. I think that’s the key. The time between when a deal is announced and when it is effective. If it’s effective from the moment it’s announced or slightly backdated then there won’t be any issues. If it gets announced soon and isn’t effective until 1/1 then everybody will suffer. Hopefully the government is having these discussions with the manufacturers and timing it right, but given that it’s just based on whenever a vote passes it seems like the only way to ensure it doesn’t cause problems is to make it effective immediately upon passage.
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