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Fremont Factory (California) Delivery Events to maximize credits

Discussion in 'Model 3' started by dgh, Apr 2, 2017.

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Would you go to Fremont to take delivery of your Model 3 to beat a tax credit milestone?

  1. Definitely

    48.6%
  2. Likely

    5.4%
  3. Perhaps- about a 50% chance

    8.1%
  4. Less than likely - less than a 25% chance

    8.1%
  5. No

    29.7%
  1. dgh

    dgh Member

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    Messages:
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    Location:
    New York
    Inspired by the recent EM tweet that early Model 3 reservationist had a "Pretty good" chance to get an AWD by December 31, 2017 got me thinking.

    Every quarter, especially the last quarter of the year (December 31), Tesla pulls out all the stops to deliver as many cars as they can. Part of the reason for this is to allow new owners to get their cars before milestones that affect qualifications for tax credits in the current year rather than waiting a whole extra year to benefit from the tax credit.

    Inevitability, despite Herculean efforts by Tesla and its logistic and consumer finance partners, some cars don't make the cut off, and are delivered in the following quarter. While getting the tax credit sooner than latter is a significant benefit, getting the full $ 7500 vs. $ 3750 credit can be quite material in the affordablity of the Model 3 for some buyers. By extension, getting a half $ 3750 vs. $ 0 credit once the phase out begins is a big deal too.

    With a bit of planning, Tesla could host "Delivery Events" events at or near milestones at or near the factory with a popup delivery center. A big parking lot as well as some tents where registration, finance, and insurance paperwork can be finalized would be the key ingredients. These Delivery Events could allow hundreds, and prehaps thousands, of new Tesla owners to obtain a significant benefit before an upcoming milestone deadline.

    Here are some upcoming significant milestones:

    December 31, 2017 - Allow new Model 3, as well as S and X, owners to get the $ 7500 tax credit apply on their 2017 tax returns

    June 30, or September 30, 2018 (?) - Last day for delivery to get the full $ 7500 tax credit before it is reduced (phased out) to $ 3750.

    December 31, 2018 - Allow new Tesla owners to get the $ 3750 tax credit to apply to their 2018 tax returns.

    March 31, 2019 (?) - Last day for delivery to get the a $ 3750 tax credit before it is fully phase out to $ 0.

    So, how many Model 3 reservationist in the US that are not local to Southern Califonina would be willing (or even excited) to take delivery before a milestones in Fremont? While it be super cool to be able to get a factory tour that many Model S and X that took local delivery, even without a tour, Tesla could take modest steps to make it an extra special event. Perhaps give out of state owners a special one-time extra allocation of Supercharger credits to help them drive home in their new Model 3 would be a nice gesture as well.

    Lastly, in fairness, I think Tesla should not "bump" anyone from getting their car before a milestone date that reserved early enough to have it locally delivered. The events in Fremont should be targeted to reservationist who would have their cars produced before the milestone, but not soon enough to assure enough time to have them locally delivered before the milestone deadline.
     
  2. melindav

    melindav ☰ reserved

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    Location:
    Vancouver, WA
    1. There is no confirmation yet that Tesla will continue to offer Factory Delivery. They may find it a distraction at the factory and not possible when production is at the scale expected in the next year and beyond.
    2. Deliveries West->East likely will be prioritized by your billing address, not the delivery location you choose. The entire point of starting deliveries near the factory is so glitches and defects found can be dealt with more efficiently by the local California area service centers instead of spreading the problems across all service centers
    3. I think Tesla's end of year push is to record more sales in that quarter more than to have the buyers able to be closer to tax filing/returns.
    4. Fremont is in the Bay Area, Hawthorn is in Southern California...
    5. I think this is a great way to get thru multiple deliveries at once, and they have just started something similar at Culver City, CA. but there is no reason this would be limited to the Fremont area (Culver City isn't).
     
  3. kaffine

    kaffine Member

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    Las Vegas
    Did they ever get the law changed so you don't have to pay CA sales tax if you pickup your car at the factory? I can find stories about the CA Senate passing it but not the CA Assembly or of it actually becoming law.

    I doubt I would although getting a factory tour would be great. I plan on getting some sort of paint protection put on it and would rather I do that before I drive it for 10+ hours. I could always find a place near the factory to get it done.
     
  4. melindav

    melindav ☰ reserved

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    no - it was re-written in full to remove reference of EVs and sales tax and was approved related to public real estate in the city of Santa Clara.
    Any new info about the California Sales Tax?
     
  5. shrspeedblade

    shrspeedblade Member

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    CA, United States
    I believe the tax credit halves again to $1875 for two quarters before it goes to zero as well.

    I voted definitely, but then I only live 90 minutes from the factory so that would be my preferred pickup anyway! :)
     
  6. dgh

    dgh Member

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    #6 dgh, Apr 2, 2017
    Last edited: Apr 2, 2017
    Deliveries at the Fremont factory vicinity rather than on the grounds of the factory actually makes a lot more sense. The terrible parking situation at the factory is well documented, and the last thing Tesla needs is extra people buzzing around parking lots and clogging local access roads. Some sweet spot of close enough to the factory that the cars (and Tesla employees) can shuttle from the factory to the popup delivery center with a minimum amount of resources but not too close that the extra commotion would impact operations at the factory at exactly the worst possible time. Perhaps that is someplace 20 - 45 minutes (15-40 miles) away.

    Thanks for correcting me on my geography for Fremont. Exciting milestone of another kind for SpaceX this week!

    Having regional popup delivery centers (both during milestone and until the Tesla Service Centers are further expanded) has potential. Could easily make the difference to have a multiple cars delivered to a popup delivery center rather than individually so everyone (including Tesla) can get the benefits of having the sale complete before the milestone deadline.
     
  7. Sonny Daze

    Sonny Daze Member

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