CT AWD dual motor no longer eligible for the IRA tax credit?

[HitchHiker71]

Seeing some content today that indicates the dual motor CT AWD is no longer eligible for the $7500 federal tax credit. Of course, it's early on considering it's only 1/1/2024 - but Tesla has updated their website content and the CT is not listed:

https://www.tesla.com/support/incentives#new-vehicles

A few news outlets and explicitly stating that the CT AWD is no longer eligible - here's one as an example:

More EVs lose US tax credits including Tesla, Nissan, GM vehicles

WASHINGTON (Reuters) -Many electric vehicles lost eligibility for tax credits of up to $7,500 after new battery sourcing rules took effect on Monday, including the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, some Tesla Model 3s and Chevrolet Blazer EV, the U.S. Treasury said. The Treasury...

finance.yahoo.com

Hoping this data is preliminary and subject to correction, but figured I'd post this here to see what others are reading and to track the status of CT IRA tax credit eligibility heading into 2024. The IRS hasn't actually posted an official list of eligible vehicles for 2024 - so I'm still holding out hope this is a work in progress and that the dual motor CT will ultimately qualify for the IRA tax credit. I guess it's a bit surprising to me that it doesn't, given the use of the 4680 battery line that is, AFAIK, 100% assembled in the US, with source materials primarily coming from US trade friendly nations (i.e. not China).

 

[Mrbrock]

If anything it should drop to $3750 since we know it is 100% assembled in US. So maybe there is something else. $79990 should keep it under $80k so there is something else going on.

 

[HitchHiker71]

If anything it should drop to $3750 since we know it is 100% assembled in US. So maybe there is something else. $79990 should keep it under $80k so there is something else going on.

Agreed - let’s give it a few days to see what happens. The odd thing here is that the IRS actually still lists the CT for the 2023 year as a 2024 model - but that obviously changed today. There’s a part of me that wonders aloud if the CT is actually on the IRS list for both 2023 and not yet published for 2024 - but this isn’t reflected on the Tesla websites despite the fact that Tesla may know this is the case. If so, this could be Tesla trying to get people to buy the FS edition for $20k more - and by removing the CT 2024 IRA tax credit info from their website - at least for the time being - it makes it look like it doesn’t qualify - since having it listed may cannibalize both FS sales and trimotor sales as long as this data is actually published on their website. We will simply have to wait and see either way.

 

[kabin]

Seeing some content today that indicates the dual motor CT AWD is no longer eligible for the $7500 federal tax credit. Of course, it's early on considering it's only 1/1/2024 - but Tesla has updated their website content and the CT is not listed:

View attachment 1004814

https://www.tesla.com/support/incentives#new-vehicles

A few news outlets and explicitly stating that the CT AWD is no longer eligible - here's one as an example:

More EVs lose US tax credits including Tesla, Nissan, GM vehicles

WASHINGTON (Reuters) -Many electric vehicles lost eligibility for tax credits of up to $7,500 after new battery sourcing rules took effect on Monday, including the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, some Tesla Model 3s and Chevrolet Blazer EV, the U.S. Treasury said. The Treasury...

finance.yahoo.com

Hoping this data is preliminary and subject to correction, but figured I'd post this here to see what others are reading and to track the status of CT IRA tax credit eligibility heading into 2024. The IRS hasn't actually posted an official list of eligible vehicles for 2024 - so I'm still holding out hope this is a work in progress and that the dual motor CT will ultimately qualify for the IRA tax credit. I guess it's a bit surprising to me that it doesn't, given the use of the 4680 battery line that is, AFAIK, 100% assembled in the US, with source materials primarily coming from US trade friendly nations (i.e. not China).

That is curious given the CT is said to use 4680s. One would assume Tesla anticipated this? Anyway, if true there might be a sucking sound on dual motor CT reservations and force Tesla to drop the price.

The CT can't seem to get a break.

 

[uscbucsfan]

The 80k CT isn't for sale, yet. It could be why Tesla says it's likely to qualify later in 2024.

 

[cwerdna]

Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After has been updated to include vehicles purchased in 2024.

 

[HitchHiker71]

Seems more official now….

 

[kabin]

The 80k CT isn't for sale, yet. It could be why Tesla says it's likely to qualify later in 2024.

That might make the most sense. Maybe even minimize Osborne effect. On the other hand, it's a sales wet dream as lower cost versions will sit on lots if they ask over $80k.

 

[HitchHiker71]

The 80k CT isn't for sale, yet. It could be why Tesla says it's likely to qualify later in 2024.

Which could also be code for Tesla not selling anything other than the FS models until that same timeframe, which wouldn’t be surprising given they will sell as many FS models as they can until the demand has been exhausted and sales of the normal models will then start. This also likely means the FS models really won’t have any substantial resale above and beyond the normal equivalent CT models long term.

 

[FLRifleman]

The 80k CT isn't for sale, yet. It could be why Tesla says it's likely to qualify later in 2024.

The Hummer EV isn't listed either, because there are zero trims available under the MSRP cap.