Inventory models and huge discounts are back

[HankLloydRight]

When the tax credit phases out Tesla is going to start incentivizing at the time or purchase.

Nobody has any idea what (if anything) Tesla will do when the tax credits drop $3,750. I suspect they'll do very little or nothing. The tax credit isn't like an instant rebate or discount off the car. In many cases, people have to wait a year or more to even see the tax credit -- and that's IF they even qualify. It's like a nice little delayed bonus. But people are still paying the full retail price of the car upfront. So they can afford it. No reason at all for Tesla to subsidize the tax credit phase out. It's not like they have any competition.

 

[whitex]

Now is probably the worst time to buy.

Model S refresh coming soon
Questionable Q3 production/delivery results
CEO off the rails
Executive team leaving en masse
Tax credits set to phase out
Unlimited supercharging phased out

Any two of those would be a hard wait-and-see for me. YMMV.

Hmmm... tax credit going away is a hard wait-and-see for you? Wait for what, until there is no more credit? Do you insist on paying more taxes on some principle?

Or are you just posting a flame bait because you are bored?

 

[JeffreyY]

Did you specifically ask about it with an ordered car, or an inventory car ?

Good question. Ordered car. I suspect it might be valid for inventory cars.

 

[St Charles]

There's also the rumor/speculation that free supercharging has made another return, for a "limited time": Tesla brings back free Supercharging to inventory cars and Model 3 to help sell cars in end of quarter rush

I am picking up an inventory P100D next week which will have free lifetime supercharging. I made the purchase commitment after the September 16th Deadline. My Owner Advisor states that Free Lifetime supercharging is available on Inventory cars through the end of the month.

That said, is this benefit ever really going to go away? No. It's not likely to be as available as it has been but we'll see it again from time to time.

 

[glide]

Hmmm... tax credit going away is a hard wait-and-see for you? Wait for what, until there is no more credit? Do you insist on paying more taxes on some principle?

Or are you just posting a flame bait because you are bored?

If they are discounting inventory models at this rate with the credit in place, what do you suppose will need to happen once the credit expires in order to encourage sales and continue to hit their targets?

As much as everyone likes to believe this company is built on love and unicorns, it is not.

 

[HankLloydRight]

If they are discounting inventory models at this rate with the credit in place, what do you suppose will need to happen once the credit expires in order to encourage sales and continue to hit their targets?

It doesn't just expire. It drops down to $3,750 for two quarters, then half again for the next two. So it's a gradual phase out.

See my post above. People are still going to have to pay the full list price when they buy the car new, or inventory with a discount. Tesla won't have to subsidize the declining tax credit, the demand likely isn't that price sensitive that they can't absorb a $3,750 price increase (for MS or MX).

 

[bmah]

As much as everyone likes to believe this company is built on love and unicorns, it is not.

I don't know anyone who does. Please stop trying to drag this thread off-topic with negative hyperbole. The subject of this discussion is inventory cars and discounts thereon.

Bruce.

 

[glide]

I don't know anyone who does. Please stop trying to drag this thread off-topic with negative hyperbole. The subject of this discussion is inventory cars and discounts thereon.

Bruce.

Right. And I am stating discounts on inventory cars right now are not a good reason to buy.

Much like free supercharging, incentives will always be available to drive sales.

Are you long on the stock and need to push sales this quarter or something?

 

[Malibuscott]

I'm also trading in my P90DL for a P100D with 150 miles. I will have it next week. The refinement over my 2018 car is evident. It's a great time to buy!

 

[whitex]

If they are discounting inventory models at this rate with the credit in place, what do you suppose will need to happen once the credit expires in order to encourage sales and continue to hit their targets?

You are mixing up concepts. They discount inventory cars as an incentive for quarter end. Notice that the big incentives are on car like P100D with 3000+miles of ludicrous test drives - it makes sense to get rid of those periodically and replace then with new cars. The mostly unused cars get $5k off but that is for cars with FSD added to the price. Whether there is a tax incentive or not would not change the end of quarter discounts. Even when there is viable competition, say Taycan, where Tesla has to compete with cars which qualify for the incentive, it makes absolutely no sense to discount your product more that the incentive would have been, so at best you can hope for discount to match the competitor incentive level, so a wash to today. Then there is the fact that if they do choose to discount the cars to compete with cars which still have the tax incentive, that leaves less profit in the car, therefore less room for end of quarter discounts.

So, any way you slice it, there is nothing financially beneficial to the buyer that can come from tax incentives going away - at best you can hope for is a wash. It pretty much boils down to: Would you rather have $7,500 today or maybe up to $7,500 later?

 

[darrelld]

Completed delivery this afternoon, car was in perfect condition.

 

[Peter Lucas]

I'm also trading in my P90DL for a P100D with 150 miles. I will have it next week. The refinement over my 2018 car is evident. It's a great time to buy!

How much cash did you need on top of the trade-in for that upgrade?

 

[whitex]

How much cash did you need on top of the trade-in for that upgrade?

I will guess about as much as a brand new base 75D?

 

[CSFTN]

I'm also trading in my P90DL for a P100D with 150 miles. I will have it next week. The refinement over my 2018 car is evident. It's a great time to buy!

Examples?