Discussion: Model 3 and Y price drop Jan 2023 / April 2023 / Oct 2023 and All other Pricing Speculation going forward

[702sunk]

I feel it will be a game changer. Many people still think a Tesla is a $100k car, and many more people don't have $7500 laying around up front, or want to roll it into a loan. A Model Y that is $43k 'out the door' vs. waiting months and months and months and doing lots of paper work to get your money back later, this will be 10x more appealing to... literally everyone. I can't imagine anyone wanting to get a rebate when they can get a 'coupon'.

You can then directly compare a $43k Model Y to a $43k Honda or Toyota or Ford or whatever, and people will have the 'ahh hah' moment, and these things will sell like crazy.

but, it's just a hunch.

how are you getting 43K OTD?? MY AWD base is $47.5K and it should be $44K even with the tax incentive before taxes and fees. Did I miss something?

 

[Ron J.]

IF your income and federal tax burden qualifies you for the max. tax credit, then the MY (AWD, LR or Performance) qualify for the full $7500 federal tax credit and that gets the price of the LR down to approx. $43K and the AWD to approx. $40K. Starting 1/1/24 the credit will be given thru Tesla when you take delivery rather than having to wait until you file your Federal Income Tax return the following year. Of course, the sticker price for a MY may very well change between now on 1/1/24. So starting in 2024 the out the door price when you take delivery will include the discount for the tax credit.

 

[Lartymarf]

IF your income and federal tax burden qualifies you for the max. tax credit, then the MY (AWD, LR or Performance) qualify for the full $7500 federal tax credit and that gets the price of the LR down to approx. $43K and the AWD to approx. $40K. Starting 1/1/24 the credit will be given thru Tesla when you take delivery rather than having to wait until you file your Federal Income Tax return the following year. Of course, the sticker price for a MY may very well change between now on 1/1/24. So starting in 2024 the out the door price when you take delivery will include the discount for the tax credit.

Hi Ron,

Any speculation on whether or not we would need to pay the government back in the tax credit if for 2024 the tax liability didn't reach $7500? Say when the tax return is filed in March of 2025, tax liability was $6500, does that mean we need to cut a check to the IRS for $1000 at that point in time? Tks!

 

[Vulkan]

From what I understood it is the next generation of Hardware with better cameras , radar optimized to work with Tesla Vision. Multiple rumors as to when they will start appearing in Y. Some say Q4 of this year while others say fall of next year..

Will Tesla offer a HW refresh for those on older crappier hardware?

I’ve been seeing a lot of Model Y rolling out of Giga Texas with HW4… my car has the old headlights and HW3…

 

[illusion]

Will Tesla offer a HW refresh for those on older crappier hardware?

I’ve been seeing a lot of Model Y rolling out of Giga Texas with HW4… my car has the old headlights and HW3…

No confirmed by Mr Elon himself.

 

[carlrbrugger]

Hi Ron,

Any speculation on whether or not we would need to pay the government back in the tax credit if for 2024 the tax liability didn't reach $7500? Say when the tax return is filed in March of 2025, tax liability was $6500, does that mean we need to cut a check to the IRS for $1000 at that point in time? Tks!

No. I’m not an accountant, but believe the IRS would owe you $1000 in that scenario.

 

[fholbert]

Basic Model Y. Black inside, white outside, increased to $47,740

Was $46,990 in April.

 

[mborkow]

HW.4 costs more

 

[Bikeman]

...and was $64,990.00 in December. What's the beef?

 

[fholbert]

...and was $64,990.00 in December. What's the beef?

No complaints here, I bought in April when the price hit bottom.

 

[ZippyDC]

The beef is $750 can buy a lot of beef.

 

[vickh]

My VIN is assigned so I'm sure they'll push delivery by next week.

Didn't see any MY Q end incentives like free SC w/ M3. I guess there is still next week

 

[King David]

Hi Ron,

Any speculation on whether or not we would need to pay the government back in the tax credit if for 2024 the tax liability didn't reach $7500? Say when the tax return is filed in March of 2025, tax liability was $6500, does that mean we need to cut a check to the IRS for $1000 at that point in time? Tks!

Yes, you would have to pay the difference back. The IRS would not give you whatever you weren't able to use as a Tax Credit, which is a one time credit that you cannot keep/bank until the following year.

(I know other people that think this is a rebate, which it is not. If it were, you'd probably get the whole $7500)

 

[vickh]

Yes, you would have to pay the difference back. The IRS would not give you whatever you weren't able to use as a Tax Credit, which is a one time credit that you cannot keep/bank until the following year.

(I know other people that think this is a rebate, which it is not. If it were, you'd probably get the whole $7500)

How will it work 1/24? TSLA takes $7.5k off price?

 

[King David]

How will it work 1/24? TSLA takes $7.5k off price?

Not exactly. Car is the same price but with the appropriate paperwork the $7.5K works as part of your down payment. Then when you file taxes in 2025 if your tax liability is less than the $7.5, you'll owe the difference back. For example your tax liability is only $5k, you owe the IRS $2.5k, which could come out of whatever withholdings you may have had

 

[vickh]

Not exactly. Car is the same price but with the appropriate paperwork the $7.5K works as part of your down payment. Then when you file taxes in 2025 if your tax liability is less than the $7.5, you'll owe the difference back. For example your tax liability is only $5k, you owe the IRS $2.5k, which could come out of whatever withholdings you may have had

Ahh. Yes def. have that liability but i thought it would reduce price and help w/ sales tax (and VLT here in AZ) .So no difference other than a few months of waiting for credit $

Buying in cash.

 

[YellowJacketMS]

Not exactly. Car is the same price but with the appropriate paperwork the $7.5K works as part of your down payment. Then when you file taxes in 2025 if your tax liability is less than the $7.5, you'll owe the difference back. For example your tax liability is only $5k, you owe the IRS $2.5k, which could come out of whatever withholdings you may have had

Would you still be subject to the income limits like it is now? Does any of that change with Tesla front ending it?

 

[vickh]

Would you still be subject to the income limits like it is now? Does any of that change with Tesla front ending it?

imagine so. But wondering if you bring in returns to TSLA?

 

[Redhill_qik]

imagine so. But wondering if you bring in returns to TSLA?

It would be highly irregular if it did. When you buy the car, the manufacturer would be getting paid from multiple sources, buyers cash (at purchase), financing cash (at purchase), federal credit (likely a few weeks later) and state incentives (likely a few weeks later) and they are done. If the buyer isn't eligible for the whole federal $7,500 tax credit then they would owe that money to the IRS only to make the IRS "whole".

I guess the interesting thing though is, what if the buyer never submits a tax return for the year. This might be because they are a tax cheat or maybe they aren't required to because they don't have enough earned income. Will the IRS have a process in place to go after the buyer and get back their $7,500 or will it just be lost in the system.

 

[willwllx]

Are people waiting for July 19th investor call before placing an order, for Juniper/Pricing potential changes?