Discussion: Large price reduction Across Tesla vehicle family 1.12.2023

Tesla has reduced Model Y and Model 3 prices DRASTICALLY. Now several models will qualify for the $7,500 tax incentive until at least March.

Here is a picture of the price reductions.

It is important to note which cars will now qualify for the tax credits and which won’t.

Model 3 RWD qualifies for the Tax credit until March. The effective price for a no option Model 3 RWD should now be about $36,500 after the tax credit.

Model 3 LR should qualify for the tax credit. However, you can’t configure it on the site. You will have to find one already built but not sold to get one.

Model 3 Performance is under the $55k cap now. However, it is not listed on the government website as being eligible. The Tesla website explicitly says it qualifies right now but this may be incorrect. You might find that when you file your tax return in 2024 they deny it because it is not listed as being eligible with the government.

Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2023 and 2032.

www.irs.gov

Model Y LR now qualifies. The effective price for it is now about $45,490 after tax credits.😳😭

Resell values have been OBLITERATED! These cars are essentially worthless on the resell market now.

This really is a monumental shift in pricing for Tesla. They were already dominating the market and this can only strengthen their lead.

None of the Model Y Performance cars will qualify for the tax credits but that price is now less than I paid for my 2022 Model 3 Performance($59k).

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(moderator note: In model 3 subforum this will be THE thread on this topic. All discussion on this price cut in this subforum will be moved in to this thread, so there will not be multiples of this topic in this subforum)

 

[vickh]

I am willing to bet that it is costing Tesla a lot of money to have their Traded in Used Cars sit right now. If a new car is only 3 to 5k more than a used one people are going to purchase new cars. The cars that Tesla took in on trade a few months ago are worth less now. Tesla has too much money into them and those cars are competing with cars that Tesla paid less for on trade in during the past few weeks. The older cars will keep loosing value until Tesla sells them at a break even point or at a loss.

they gave/give really low prices for trade in. What you're saying applies to the likes of Carvana etc. Lots of threads about low prices for TSLA trade in.

 

[Evanh1488]

I ordered a Model YLR and a Model 3P last weekend. My service advisor is still not sure what the tax credit will look like with a lease (which we prefer to do). Anyone else have any updates?

 

[launchd]

I ordered a Model YLR and a Model 3P last weekend. My service advisor is still not sure what the tax credit will look like with a lease (which we prefer to do). Anyone else have any updates?

For what it is worth, I don't think this is a question of if it can be done - because it can absolutely be done - it is just a matter of if Tesla (and their partner financial institutions that back their leases) agrees to do it.

Lucid is an example of the commercial EV tax credit being applied to consumer leases.

 

[threeputts]

Ford following suit but not as drastically.

Ford cuts prices on electric Mustang Mach-E, following Tesla’s lead

The automaker said Monday it will lower the pricing of the Mach-E, which is comparable to Tesla’s Model Y, by an average of about $4,500, depending on the model.

www.nbcnews.com

 

[TesslaBear]

Ford following suit but not as drastically.

Ford cuts prices on electric Mustang Mach-E, following Tesla’s lead

The automaker said Monday it will lower the pricing of the Mach-E, which is comparable to Tesla’s Model Y, by an average of about $4,500, depending on the model.

www.nbcnews.com

They missed the mark big time on their price cuts. They only got one model below the 55k cap that previously was not, and it is not an extended range version. So a buyer considering between a 330 mile range MY and a 310 range Mach-e will pay a nearly $15k premium for the Mustang.

Ford will have to lose their ass and drop a LR below $55k, otherwise they lose their ass anyway.

 

[threeputts]

They missed the mark big time on their price cuts. They only got one model below the 55k cap that previously was not, and it is not an extended range version. So a buyer considering between a 330 mile range MY and a 310 range Mach-e will pay a nearly $15k premium for the Mustang.

Ford will have to lose their ass and drop a LR below $55k, otherwise they lose their ass anyway.

Agreed, the only advantage the Mach-e has right now is if you want a standard range (smaller battery) model, which has an msrp $7500 less than the least expensive model Y (and qualifes for the tax credit).

 

[vickh]

Agreed, the only advantage the Mach-e has right now is if you want a standard range (smaller battery) model, which has an msrp $7500 less than the least expensive model Y (and qualifes for the tax credit).

I'm ok with Mach-e standard range, but not having front camera/ AP is a huge problem. Also reliability issues

 

[YW555]

Dumb question: If I just picked up my MYLR yesterday, can I file the tax rebate for the 2022 tax return (due April)? Or I'll have to wait until next year.

 

[threeputts]

Dumb question: If I just picked up my MYLR yesterday, can I file the tax rebate for the 2022 tax return (due April)? Or I'll have to wait until next year.

The tax credit will apply to your 2023 return.

 

[niray9]

Yahoo Finance Tesla stock rips higher as IRS boosts Model Y EV tax credit eligibility

According to new rules, the IRS will use the EPA’s guidelines for which vehicles qualify as an SUV or crossover, meaning all models of the Tesla Model Y qualify for the higher $80,000 price cap for the EV tax credit. The tax credits, which are funded via the IRA (Inflation Reduction Act), previously used IRS guidance that only classified the 7-passenger variants of the Model Y as an SUV.

 

[TechM3]

Very much bummed that I missed the price cuts! I picked mine up in December - but don't look back and just enjoy the Tesla you bought. When people worry about these thing, they get frozen and don't buy anything.

 

[Turknhoff]

Ok basically long story short, I have a model3p full fsd the usual generic Tesla car, I have owned luxury mid range cars for over 30 years, in that time I’ve had new E classes, BMW’s, Porsche etc etc you get the picture. I Bought this car used about nine months ago as we have the solar panels and battery set up at home so it seemed like a good idea. I have never lost so much value on a car in such a short period of time, and that includes around ten new cars over my driving lifetime, I bought it at a good price and if I was to sell today I’d lose around 16k. The car doesn’t cost anything as I bought outright but after doing a bit of web research it appears not only are they going to stay low there likely to carry on falling like a brick.
I like the car, well it’s ok, there’s a lot of party trick features to it that simply is a waste of time apart from demonstrating to others what it can do, kids seem to think it’s cool, I could also pull it apart after coming from an S class but that’s another topic.
So do I sell and take the hit, maybe buy one again after a year once the ev market stabilises, or stick with it hope for the best and put my blindfold back on.
No abuse please, this is just a general question as nearly everyone on here is in the same boat if you own your Tesla.
Thanks.
Ps, sorry not so short after all.

 

[cappo3]

If you have nothing against keeping the car (aka it is no nuisance to your everyday life), I'd keep it. Why realise a loss of 16k on a functional appliance? Or do you already have your eyes and heart set on something new?

 

[Shelburne]

Sorry, but with respect, I don't think of myself as being in the same boat as you. I have always kept my cars for 10 years before buying a new one. Two reasons for that:

1. Over those 10 years, I set aside enough money every month so that, at the end of those 10 years, I can buy a new car without financing.

2. Buying a new car every few years is simply a waste of energy, metal, plastic and glass. This planet has a finite amount of resources and energy that need to be used wisely and not wasted. Even if a car was made with 100% recyclable materials there is still a heck of a lot of fossil fuels involved in
the manufacturing process.

 

[ICE5891]

If you like the car I would keep it. Future prices are unpredictable, could go up if waiting time goes up, could go down if "model 2" is announced and people cancel their orders for waiting a cheaper one. Everything can happen.

But the is still a really nice one, if you dont have your heart looking on something else and is more a value issue I would keep it.

 

[jbiggs2]

99% of cars are depreciating assests. The wisest financial move is financing at a low rate (if still possible) and investing the money in a hopefully appreciating stock, mutual fund, etc. You already chose a bad move and selling a car within the first 3 years is almost always a losing proposition. Good luck.

 

[T4M3]

If your budget and current position allow it, I would just keep the car instead of getting a 16K hit. The M3P is a great car IMO

 

[SumOne]

I'm in the same boat as you. The EV tax credit + cheap gasoline + tesla dropping the price to meet criteria for the tax credit has pummeled the cost of this car. I think once these go away the price will stabilize, but right now is still near rock bottom.

With how much you've invested with batteries and solar you may as well just keep it at this point. I still don't find any of the competitor EV's compelling enough to make a switch. Just keep it as a daily and buy something ridiculous on the side.

 

[Turknhoff]

Thanks for the replies, I wouldn’t be selling because I have to quite the opposite, I’d sell it simply because I despair at losing such a large sum of money in such a short period of time, for me it’s time to ‘cash out’ as the saying goes. And even with prices being as low as they are I wouldn’t buy again just yet.
Thanks again, anybody want an absolute bargain of a car Lol 😂

 

[one2many]

My take on this is there is no rime or reason on buying
or selling cars. So if there is no logic or money considerations, well
it get back to a better question. Should I keep my partner or go
for a younger model. I guess as she can mow the lawn, i will keep her.
Sorry that was bad but it is not always cost, replacement but love.
It is what its and it aint what it anit. Love makes people happy.
Live and let live..