When that happens, the price is raised by the amount of the benefit and then shown as taken off on the invoice, no benefit to the purchaser at all. (Some companies may not work it this way, but I believe them to be few.)
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Full Tax Credit Pointless
- Thread starter Fair Verona
- Start date
Shygar
Member
It's just the gov't's way of not having to pay the full $7500. Every single person who bought it last year in the US probably did not qualify for the full $7500.
FWIW, I've purchased four cars over the years that qualified for the tax credit, and I received the full amount each time. (Of course, I'm not rich enough to have zero income tax.)
I totally feel you. My same car depreciated ~10% in 3 months. I took deliver mid Nov 2018 and paid 61k. The exact same car only cost 55k now. Even factoring in tax incentive and everything, I will still save ~$2k if I order it now. I would have definitely waited if I know that's gonna happen.
i'm still happy with my model 3. i'm ok with them lowering the price to compensate for the tax reduction. I got my car in aug and been enjoying the crap out of it. Also they need to do this in order to keep Tesla going. I hope Tesla succeed.
They actually did. They were able to charge you $7500 more and you got repaid by the rebate.
Tesla was the one that got the benefit and without it, they wouldn’t be in business today.
ord3r
Member
You realize that was literally the point of the tax credit? To fund development of EVs i.e. give more money to Tesla and others. The purpose of the tax credit isn't to give well to do folks a discount on their cars.
It was really obvious that Tesla would drop the price of the Model 3 to compensate for the federal credit. Not sure why you expected something else.
Soda Popinski
Member
Economics. The market will bear the costs. I saw the same thing with the Prius, prices went down when tax credits went away. I saw the same thing with solar, as the rebates reduced, so did prices so net cost was the same. This is what subsidies are suppose to do, make the high priced thing affordable, not make it cheap.
That’s correct. The Fed Tax Credit was useless. I made sure to get it and actually lost money doing it.
It might have gone up. Then all the early adopters would have volunteered to pay the difference. To be fair.
superbaka
Member
It _became_ about giving consumers cheaper cars when Tesla heavily marketed their higher-than-expected priced cars to potential customers as affordable under the tax credit, hyping the cost savings throughout their website and configurator to justify purchases they badly needed, for cars they admitted were priced higher than competitors, only to pull the rug out in 2019. Its become clear the plan all along was harvest the tax credit to themselves, unless they make right by the owners by offering them a consolation.
I remember they were hyping people get into the tax savings in Dec 2018. They didnt lower the price to get sales - they spoke about the final days of the tax savings.
Now the plan was clearly to take that profit and drop the prices for the next batch of consumers, devaluing the consumers' cars in the process.
Someone said it well - they effectively transferred the tax benefits from consumers to themselves. Gotta love capitalists.
But you act as if they are a bunch of fat cats rolling in profits. Even with those rebates, they were barely profitable and they won’t be this quarter.
These rebates were needed in order for them to be in business. As much as people may hate these pricing changes...I can promise you will hate an out of business Tesla much more.
We really should be rooting for them to make it through this.
It was not really obvious because they used it as a marketing ploy. Order now before the tax credits expire!
However, I do wish the tax credit had stayed for everyone. Tesla had to get rid of the referral program and fire all their sales staff to reduce the price of the cars.
Tesla can raise capital at any time. They have plenty of funds and billionaires looking to take a stake in the company. At one point last year, the Saudi's were in talks with Tesla to acquire shares for a cash infusion. Musk rebuffed them and the Saudi's used their 5 billion to buy Tesla stock in the open market.
Don't act like Tesla needed the funds to survive. They had options.
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