Delaying fall delivery for EV credit?

[hybrid>EV]

It looks like adding or removing any option on a MYLR doesn't change the EDD anymore. EDD is DEC - APR regardless of color, wheel, or FSD option selection. Seems like the only way to have an earlier EDD is to pick MYP instead of MYLR. That means there is at least 4 month worth of orders in the pipeline.

I would think Tesla can make everyone happy if they allow people to delay 4 month. Those who need the credit will delay and get the car and credit next year, those who don't need credit get the car a lot sooner. Tesla won't have any idle assembly lines or workers and would continue to produce cars at normal pace.

 

[Yelobird]

Totally agree. If canceling the order is the only way to do it so be it. However if Tesla allows people to put it on hold or delay than just as fine right? This is all caused by three things coming together to form the perfect storm only one of which people can control.
1) Unprecedented wait times (Tesla)
2) EV tax credit that takes affect 5 months after the bill is passed. (Government)
3) Ordering one of the most popular cars in the world (The individual)
Take away any one of those factors and this isn’t even a discussion. Just remember the individual is only ONE factor here.

All I’m saying is most of us come to these forums to research, share information and explore options. Somehow shaming people because they are trying to explore their options isn’t what these forums should be about.

Would add unprecedented and unpredictable wait times which very few appreciate including Tesla mostly stem from people flipping order dates wildly. When thousands of buyers want to delay their specific design order for months thousands of others get Wild ODD changes which completely screws up everyone’s buying experience. If we want more predictable delivery dates they need to stop allowing random hold options.

 

[Tam]

What does that mean? And what incentive do they have to not delay? Just move deliveries earlier?

Here's today's example: The hold date was 10/31/2022, but Tesla wrote back that it'll be canceled on 09/18/2022 if the owner does not change the status to "I'm ready" by the end of 09/17/2022.

Tesla threatening to cancel order before 30 days of first attempt

Hello everyone, I'm a bit confused and annoyed. When notified that my delivery is coming up soon, I decided to put my order (for a Tesla Model 3 RWD) on hold. The website said it will be on hold until October 1st, almost exactly a month from my first delivery attempt. Well I just got notified...

teslamotorsclub.com

 

[EV Obsession]

Received a text from Tesla yesterday asking if I can take delivery this month. My EDD was Oct 3-Nov 7 previously. Called today and told them no and asked to put a hold till Jan, best they can do is Oct 1st and I will most likely need to take deliver before the end of the year.

Sounds like Tesla is going to play hardball.

If you think EV prices are in a bubble then this is the worst time to purchase. I’m much better off waiting for the recession to take full effect and the prices to drop or wait for solid state.

 

[arbitrage000]

Received a text from Tesla yesterday asking if I can take delivery this month. My EDD was Oct 3-Nov 7 previously. Called today and told them no and asked to put a hold till Jan, best they can do is Oct 1st and I will most likely need to take deliver before the end of the year.

Sounds like Tesla is going to play hardball.

If you think EV prices are in a bubble then this is the worst time to purchase. I’m much better off waiting for the recession to take full effect and the prices to drop or wait for solid state.

Yep...they'll be playing hardball to have strong EOQ numbers in December...don't want to upset the investors or tank the stock price.

 

[arbitrage000]

Look at the main site now... all MYLRs can be delivered between Dec 2022 - Apr 2023. Even the base white model which used to be 8+ months.

Production has ramped up significantly according to a source of mine. I suspect most orders made before today will be delivered by the end of 2022.

I would just take delivery and enjoy it.

I'd be very surprised if orders placed today got delivered in December other than a few in CA.
Mar-May orders have EDDs of Oct-Dec right now with Jun-Aug having EDDs Dec-Feb. Maybe Tesla will just screw over the lower margin orders from before June and deliver Sept orders in Dec instead (I'm sure there will be some cases of this) but I think the majority of orders placed now will see delivery into 2023.

Some recent MYP orders that were placed saying Sep-Oct on the website immediately had specific EDD of Nov-Dec after ordering. The dates on the order page are useless.

 

[DanDi58]

It looks like adding or removing any option on a MYLR doesn't change the EDD anymore. EDD is DEC - APR regardless of color, wheel, or FSD option selection. Seems like the only way to have an earlier EDD is to pick MYP instead of MYLR. That means there is at least 4 month worth of orders in the pipeline.

I would think Tesla can make everyone happy if they allow people to delay 4 month. Those who need the credit will delay and get the car and credit next year, those who don't need credit get the car a lot sooner. Tesla won't have any idle assembly lines or workers and would continue to produce cars at normal pace.

What is there incentive to do this? It would be a bit of a nightmare from a backlog management perspective and potentially impact their 4Q results. So, there is no incentive to do this.

 

[EV Obsession]

What is there incentive to do this? It would be a bit of a nightmare from a backlog management perspective and potentially impact their 4Q results. So, there is no incentive to do this.

A sale in Q12023 is better than no sale but I’m not arguing Tesla would actually take care of their customers, to the contrary, I believe we are in a bubble and Tesla is going ram as many cars down customers throats as they can while prices are high.

 

[Happy Hippo]

A sale in Q12023 is better than no sale but I’m not arguing Tesla would actually take care of their customers, to the contrary, I believe we are in a bubble and Tesla is going ram as many cars down customers throats as they can while prices are high.

I am on the fence and will see if I can delay one time once my vin comes in. If not, then I will wait till 2023 and see what happens. I am hearing that Tesla might do some sort of incentive for people to take delivery this 4th quarter and what they have done in the past(I heard) that they may give like an option for a free paint, or tires, etc for people to take delivery in December.. Who knows.... Plus, I am not in a rush anymore to get one since there are so many EV's coming out now. I prefer the Tesla but I can wait to see what happens in January...

 

[EV Obsession]

Yep...they'll be playing hardball to have strong EOQ numbers in December...don't want to upset the investors or tank the stock price.

I think they are going to have a rough Q4 no matter what. Too many orders don’t make financial sense plus the EV speculator market is dead. Cost of delivery is going to go way up because of those rejecting cars as they try to delay their order. Tesla should get ahead of this and offer a delay to those that want it while also spinning the rough Q4 as a one off because of IRA.

 

[voxel]

I think they are going to have a rough Q4 no matter what. Too many orders don’t make financial sense plus the EV speculator market is dead. Cost of delivery is going to go way up because of those rejecting cars as they try to delay their order. Tesla should get ahead of this and offer a delay to those that want it while also spinning the rough Q4 as a one off because of IRA.

People said the same thing about 2021 Q4

I think there is enough demand to soak up the supply... because there are old 2021 and early 2022 orders at lower prices AND income limits kick in 2023 so there will be a few or many that won't even qualify for the new EV tax credit.

 

[acpd]

EDD isn't moving for MYLR? It's been December for almost a month.

Tesla already knows that they are likely making more new cars than new orders. Existing order backlog is keeping them aflot.

If you have order already in place, Tesla will force you to take delivery in 2022.

 

[Yelobird]

Too many orders don’t make financial sense plus the EV speculator market is dead.

Too funny. Yeah to many orders is bad business lol.

 

[Ghosty]

My delivery keeps getting closer every time I check it. November 10-December 15 now. I figured anything after December and I'll delay for the 30 days per the Purchase Agreement. Either way, I really don't care. If they cancel the order, oh well. I'm not taking delivery until 2023, whether it is my current order or I have to order another one. I'd rather lose 250 bucks than 7,500.

 

[randmness]

Are folks even sure the Model Y will qualify for the full $7500?! I have seen a lot of speculation, but from my understanding, neither the IRS or Tesla has mentioned qualifying vehicles; I’m not even aware of the rules based on percentages being clearly defined yet (ie are the 40% thresholds based off of price, material, etc.) I would assume any company that knew they were definitively qualified would be advertising it.

Ignoring that, for folks that are putting off delivery till 2023, if you are trading in a vehicle, it may not make sense to hold off delivery. Used car prices are starting to drop hard. It’s possible/likely your trade in could drop by roughly the same amount. This of course ignoring any future hikes in interest rates.

 

[AndrewZ]

Are folks even sure the Model Y will qualify for the full $7500?! I have seen a lot of speculation, but from my understanding, neither the IRS or Tesla has mentioned qualifying vehicles; I’m not even aware of the rules based on percentages being clearly defined yet (ie are the 40% thresholds based off of price, material, etc.) I would assume any company that knew they were definitively qualified would be advertising it.

Ignoring that, for folks that are putting off delivery till 2023, if you are trading in a vehicle, it may not make sense to hold off delivery. Used car prices are starting to drop hard. It’s possible/likely your trade in could drop by roughly the same amount. This of course ignoring any future hikes in interest rates.

People are optimistically assuming things and it may well turn out the way they hope, but it might not. The things you mentioned are all good reasons to not wait, and Tesla is likely also hoping to deliver as many cars as soon as possible to avoid people cancelling orders due to dropping trade-in values and rising interest rates along with the looming tax credit.

At least with inventory now building, people who cancel might not have much of a wait by the time they decide to re-order. And if prices do start coming down, it will help offset the increase in rates to benefit consumers but could mean less $$$ in Tesla's pocket.

 

[randmness]

Yea, if you’re financing and trading in a vehicle, it probably doesn’t make financial sense to wait. Used car prices are dropping 1-2% a week now and have decent room to drop a lot lower. If your reservation is close to the current price, it might work in your favor, but then again, you’ll still likely lose thousands on your trade in. We have a reservation for Y with an EDD of November. I’ve been checking our trade in’s value since the reservation and it has already lost $4K since early summer.

If you want to maximize the credit, waiting until 2024 may be a better move (when it’s applied at point of sale.) For 2023, most folks will be financing the $7500 they hope to get back (ie you’ll be losing a chunk to interest charges.) I guess if Tesla lowers the price of the Y, that could work in folks favor, but I imagine price decreases will be alot slower than increases. For new vehicles, supply still doesn’t meet demand.

 

[Happy Hippo]

Are folks even sure the Model Y will qualify for the full $7500?! I have seen a lot of speculation, but from my understanding, neither the IRS or Tesla has mentioned qualifying vehicles; I’m not even aware of the rules based on percentages being clearly defined yet (ie are the 40% thresholds based off of price, material, etc.) I would assume any company that knew they were definitively qualified would be advertising it.

Ignoring that, for folks that are putting off delivery till 2023, if you are trading in a vehicle, it may not make sense to hold off delivery. Used car prices are starting to drop hard. It’s possible/likely your trade in could drop by roughly the same amount. This of course ignoring any future hikes in interest rates.

Tesla is not going to mention anything in 2022. If they do and say that the Model Y qualifies, tons of people will cancel their order. Tesla is holding still until the new year comes and then they will make their announcement. They do not want to disturb their 4th quarter earnings for 2022 with an "announcement" ... I agree with you but some people like to roll the dice. It is all a gamble and what will the interest rates be in 2023, who knows? No one!!!!

 

[Corndart]

I am hearing that Tesla might do some sort of incentive for people to take delivery this 4th quarter and what they have done in the past(I heard) that they may give like an option for a free paint, or tires, etc for people to take delivery in December.. Who knows....

Whats your source for this information? What incentives "they have done in the past" are you referring to?

The Y will qualify from an MSRP, final assembly, and source of materials (applicable 2024 onwards). Not seeing any ambiguity in terms of interpreting the legislation that was passed.

https://www.electrificationcoalition.org/wp-content/uploads/2022/08/SAFE_1-sheet_Webinar.pdf

 

[randmness]

The Y will qualify from an MSRP, final assembly, and source of materials (applicable 2024 onwards). Not seeing any ambiguity in terms of interpreting the legislation that was passed.

https://www.electrificationcoalition.org/wp-content/uploads/2022/08/SAFE_1-sheet_Webinar.pdf

There is ambiguity in how the IRS will measure the source of materials thresholds. Tesla released a list of their current battery material suppliers; most are in China. In fact, China actually owns more than half of all lithium reserves. The question is if the non-Chinese suppliers provide enough to satisfy the 40% thresholds with the IRS? Will the thresholds be determined by price (lithium alone is up 5x since 2021; 3x in the last 6 months alone)? Weight? No one knows today as the IRS has not established the guidance for how this is calculated. I imagine lobbyists are rallying in Congress now on these rules. lol

It's possible Tesla could change where its sourcing the material from for 2023. Who really knows. If the Y is only eligible for $3750/half of the credit, buying in 2023 may even make less sense when you factor dropping trade-in value, higher financing costs, potentially more expensive car, etc. There's an argument now that it may not even make sense now for certain scenarios under a full $7500 credit expectation. For some folks (those with trade-ins and financing), it will likely be a wash.

Its also possible Tesla could lower the price of Y. I wonder if we would see cheaper variants (smaller battery packs, standard range, etc) first as lithium is expected to remain high into 2023.