IRS weighs in on tax rebate, mostly bad news for Model Y

[cdub]

That said the overall benefit of cheaper, more abundant EVs.. is that the average person will hopefully be able to afford one in the next 3-5 years.

Sadly we've been saying this forever - even 10 years ago. Remember the Model 3 and Y were supposed to be affordable? $35K to $49k

 

[texas_star_TM3]

They sell out each quarter. Major demand bought two weeks ago at a $3,750 to $7500 lower price. All companies offer end of the year savings. That doesn’t lower the MSRP.

The cars in inventory might still be in Cali. People might also be waiting on the credit ruling for the 5 seater.

Custom orders are Jan/Feb-Apr.

Jan-Mar ... for 3 and Y. Which is basically no wait given that we are already mid January.

and the msrp is irrelevant for investors. Ford doesn't lower the msrp either but hefty dealer incentives but pressure on earnings...

 

[CHILLIBAJJI]

Jan-Mar ... for 3 and Y. Which is basically no wait given that we are already mid January.

and the msrp is irrelevant for investors. Ford doesn't lower the msrp either but hefty dealer incentives but pressure on earnings...

.. don't bother explaining to fanboys who keep saying tesla is able to sell everything they made @ MSRP !! most of them are still in Mid-2022 and haven't caught-up to Jan 2023...

they are just hoping the pricing stays same the hope to keep their used car value high!! Alice in wonderland!

 

[Snow Drift]

Jan-Mar ... for 3 and Y. Which is basically no wait given that we are already mid January.

and the msrp is irrelevant for investors. Ford doesn't lower the msrp either but hefty dealer incentives but pressure on earnings...

They only offered the discount bc the Fed credit was looming and people were waiting. They don’t do this normally. They sell test drive cars and show room models at end of quarter.

My local store/service center had a giant parking lot full in December. It’s a ghost town now. Demand is not an issue.

 

[ucmndd]

They only offered the discount bc the Fed credit was looming and people were waiting. They don’t do this normally. They sell test drive cars and show room models at end of quarter.

My local store/service center had a giant parking lot full in December. It’s a ghost town now. Demand is not an issue.

… and the drastic price cuts in China and other markets? Nothing to see there either? Come on.

This is like, willful ignorance.

 

[hmmwv]

They only offered the discount bc the Fed credit was looming and people were waiting. They don’t do this normally. They sell test drive cars and show room models at end of quarter.

My local store/service center had a giant parking lot full in December. It’s a ghost town now. Demand is not an issue.

This actually proves that the demand is created by the lower prices, people are waiting for the IRA incentives because they want a cheaper car, we can see inventory build up again after the IRA MSRP caps. You can't talk about demand in absolute terms, demand is an issue at current MSRP, not so much when discounted by $7.5k.

 

[Snow Drift]

… and the drastic price cuts in China and other markets? Nothing to see there either? Come on.

This is like, willful ignorance.

China is not the US. You can’t compare entirely different people with different economies and tax incentive structures.

This actually proves that the demand is created by the lower prices, people are waiting for the IRA incentives because they want a cheaper car, we can see inventory build up again after the IRA MSRP caps. You can't talk about demand in absolute terms, demand is an issue at current MSRP, not so much when discounted by $7.5k.

Most people like to save money. Even if you wanted the car at $67k you will probably wait a month to save $7,500. That doesn’t mean the car itself is any less desirable to potential buyers. They are just being smart about it. Tesla still outsold every other EV, and even BMW itself in the US.

To think people don’t want Teslas is ridiculous. They are like Civics where I live.

 

[texas_star_TM3]

China is not the US. You can’t compare entirely different people with different economies and tax incentive structures.


Most people like to save money. Even if you wanted the car at $67k you will probably wait a month to save $7,500. That doesn’t mean the car itself is any less desirable to potential buyers. They are just being smart about it. Tesla still outsold every other EV, and even BMW itself in the US.

To think people don’t want Teslas is ridiculous. They are like Civics where I live.

no. but 1/3 of Tesla's market...

 

[Snow Drift]

no. but 1/3 of Tesla's market...

Yes. But it’s a different world.

Let’s see how bad 1Q23 is.

 

[Daekwan]

Currently showing 2600 new Teslas in stock.. 1,200 of those are new Model Y's.

Which makes sense as its Tesla best selling vehicle and the one production is most focused upon.

 

[hmmwv]

I think we should continue the pricing discussion in the 2023 pricing strategy thread. Pricing strategy for 2023?

 

[hmmwv]

In the end I see the IRA mostly as a way of subsidizing the increased cost that will come with moving all this stuff out of China, we can also consider that suppliers will have increased pricing power for components/minerals that comply with the requirements. Now add in the MSRP limits.

Minerals will be a truly monumental undertaking. Take graphite as an example that is hugely important in batteries and makes up a big proportion of them, I've seen numbers suggesting China controls something like 80% of all global battery-grade graphite production and North Korea controls 10%. My work is largely consulting with resource companies in Canada and I've done a few mining projects, it is borderline impossible to get anything out of the ground here these days. A new mining project right now, you're probably looking a decade out from engineering to commissioning and actually getting product.

What about other countries with a free trade agreement with the US? For example I'd assume South Korea can supply all the battery components but what about picking up the slack in terms of the minerals?

 

[ucmndd]

China is not the US. You can’t compare entirely different people with different economies and tax incentive structures.


Most people like to save money. Even if you wanted the car at $67k you will probably wait a month to save $7,500. That doesn’t mean the car itself is any less desirable to potential buyers. They are just being smart about it. Tesla still outsold every other EV, and even BMW itself in the US.

To think people don’t want Teslas is ridiculous. They are like Civics where I live.

Yup, no demand problem here! Just a MASSIVE $13,000 price cut (plus $7500 tax credit!) because they think it’s the right thing to do!

 

[ucmndd]

Agree. But 55k plus tax credit is definitely not going to happen.

This post aged like warm milk

 

[texas_star_TM3]

Lol. No demand issues !!! Elon just cut the Model Y price by $13k for fun

 

[ucmndd]

Lol. No demand issues !!! Elon just cut the Model Y price by $13k for fun

The tsunami of butthurt about to descend on this forum from Q4 purchasers is going to completely overwhelm all available defenses in 5… 4… 3…

 

[Zorg]

Well pretty happy I sold mine in November...

 

[texas_star_TM3]

The tsunami of butthurt about to descend on this forum from Q4 purchasers is going to completely overwhelm all available defenses in 5… 4… 3…

Imagine losing 20% in car value overnight and many are probably upside in their zero money down loans…

 

[Zorg]

Imagine the losses at all the used car dealers.

 

[ucmndd]

Imagine losing 20% in car value overnight and many are probably upside in their zero money down loans…

Oh I get it. I’d be pretty livid too. Tesla just fook’d a whole bunch of people big time.