Model S/X Owners Have Priority Model 3 Orders Over Non-Owners

[strider]

So, given that employees of Tesla and SpaceX were given early access to reservations, does that mean this is the method by which priority will be given to current owners as well? That would nicely take care of the questions regarding reservation order for various groups and methods. And it would mean that current owners should expect an email to reserve sometime between now and Wednesday.

No. We reserve at the same time as everyone else - 10:00am on Thursday. But on the back end Tesla will put current owners in a different queue. Remember that reservation number only affects when you get the "time to configured e-mail." After that all bets are off. Delivery date is then based solely on how quickly you configure and confirm and then Tesla's own batching/production scheduling.

 

[strider]

Highly optioned car > location > previous owners / employees > the world. Greatest money earnings first, quick turn around delivery second, priority of reserving as last. I believe it's determined like that and will be kept as that.

You're mixing reservation lists and production lists. See my post above.

 

[ohmman]

Sorry to wake this napping thread, but given the reservation numbers flooding in for the Model 3, I'm going to double down on my earlier point - it's not so much that Model S/X owners are jumping the line as it is highly optioned cars (which S/X owners are likely to order anyway) are going to be first. I think the way this is going to roll out is that with 300-500k reservations at the start of production, only the most highly optioned cars are going to be eligible for the tax credit anyway.

I find it terribly unlikely that a new customer ordering a "maxed out" 3 will have their car built behind a Model S owner buying a base model. So I do think that's how it's going to work out. The good for Tesla is that it's going to incentivize customers to build to a higher trim level early (in hopes of receiving the credit). The bad is that the credit will be phasing out rapidly once we get to the people for whom it might make a bigger difference.

 

[rodricklitch]

I live in LA and got the invite to the random draw. Did any owner receive an invite regardless of location?

yes i got an invitation in Portland OR

 

[wdolson]

A lot of the less optioned Model 3 buyers won't be able to take advantage of the full $7500 credit even if they did qualify. This is not a tax deduction, it's a tax credit which makes it much larger. If you owe $7500 in federal income taxes the year you buy your car, it wipes out your income tax bill. If your income tax bill is $4000, the credit wipes out your taxes, but you can't carry over the remaining $2500, it's lost.

This affects just income tax, it does not affect your Social Security and Medicare taxes paid, only your taxable income. It also can't offset taxes on investment income. Some people who bought Model Ss and Xs who get most or all of their income from investments found out they can't use the credit.

It's unclear whether the credit is extended for those who were unable or chose not to take the credit. ie whether they are counting how many people claimed the credit or if they are counting the cars sold by each car maker. In any case, when the threshold is hit, it will phase out over the next year and people who buy during that period will still get some kind of tax break. For people who are buying a Model 3 and owe $3500 or less in federal taxes will see their income taxes wiped out that year during the 50% credit. During the 25% credit people will still get some benefit. Some people who owe $1750 or less and have other income or a lot of deductions might see their tax bill wiped out.

As you do your taxes this year, take a hard look at the bottom line and how much you owe in federal income tax. It's probably less than you think. I was surprised how little my federal income taxes were when I actually looked at them last year. I run my own business, so I have to send in withholding 4 times a year and I hate writing those checks, but half that money is Social Security and Medicare, which isn't covered by the tax credit.

 

[ohmman]

This affects just income tax, it does not affect your Social Security and Medicare taxes paid, only your taxable income. It also can't offset taxes on investment income. Some people who bought Model Ss and Xs who get most or all of their income from investments found out they can't use the credit.

Can you point me to a resource that can verify this? It appears to go into your tax credit summation on line 55 of the 1040. That line comes directly out of your total tax (AMT + tax liability). I am unable to verify the assertion that taxes on investment income wouldn't be offset by this credit.

 

[wdolson]

Can you point me to a resource that can verify this? It appears to go into your tax credit summation on line 55 of the 1040. That line comes directly out of your total tax (AMT + tax liability). I am unable to verify the assertion that taxes on investment income wouldn't be offset by this credit.

I could be wrong, but someone here on the forum recently was told by their tax advisor they couldn't claim the $7500 credit because all their income came from investments, but it may have been the type of investments.

 

[isaax]

I think the public optics are bad for Tesla if they stack the deck so that the available tax credit will run out while fulfilling orders of existing customers who have already received the tax credit. Keep in mind the the existing customer base are people who could afford an expensive luxury car, taking a 2nd or 3rd taxpayer subsidy (handout). Leaves a bad taste in the mouth for new owners, and I bet several potential owners would jump ship and buy from a different manufacturer if they felt Tesla didn't want their business. There are problems in the way the law was written, but Tesla doesn't need to exploit them. Optics are better to order delivery based on the first come/first serve & how it's optioned model, the only exception is I have no problem with employees getting an early reservation slot. Tesla would have done better to reward it's existing customers with something coming from them, not the Fed Gov, like free Autopilot upgrade.

I ask, what makes current Tesla owners think they are owed or more deserving of a 2nd or 3rd Federal Tax Credit paid by US Taxpayers (not Tesla), than first time buyers? I personally think nobody should get the tax credit more than once, no matter how many or what brand of EV cars they buy. The tax law should have been written better.

I'm a current owner. What makes you think us "Tesla owners" feel we are owed something? Get your facts straight.Do you really think EVERY current Tesla owner deposited for a Model 3? There's only less than 150k owners World Wide! Current owners who deposited for Model 3 in the USA should be the least of your worries. There are 2 things that will be between you and qualifying for the credit 2-3 yrs from now. 1) Current production/deliveries of Model S and X. 2) The dedicated individuals who camped/stood in line at a Tesla store nationwide.
If you deposited anytime after the Unveiling start time, then I'm sorry you're most likely SOL. Remember, you deposited $1k for a spot in line to purchase a Model 3 sometime after the year 2017. The only thing you are entitled to other than that is a refund on your deposit. If you want to be entitled to the $7500 fed tax credit without any risk, then you may want to look at other EV's that you can purchase immediately.

May I suggest you follow Elon's Twitter Feed? He's pretty active on updating the world. Here's a Tweet from him that may shed some light as to why the delivery order is what it is. Really, there's no conspiracy.
Elon Musk on Twitter

Tesla/SpaceX employees and current owners know the drill with new releases and updates. Based on Elon's Tweet, It's easier/safer to have employees and existing owners report bugs so the mass 1st time owners 2 yrs down the road can enjoy driving their new Model 3 instead of having to frequent the Service Centers to fix some defect. Current owners expect the bugs and don't complain (much). I don't really consider that as a "reward" as you stated.

Please do your due diligence before posting ignorant and negative comments about Tesla and current Tesla owners here. You're barking up the wrong tree.

 

[Cyclone]

I can see rewarding early adopters with getting an order faster, but I have a problem with the tax credit. All the current owners, if they bought new, already got the fed tax credit. To let them jump the line to get another tax credit over people who are buying their first EV seems unfair. Would be more fair if the fed tax credit could only be taken once, then it wouldn't be just the first 200,000 cars, but the first 200,000 first time EV buyers.

I am a current owner with a priority ≡ reservation that didn't get the credit on my S, but will on my ≡. I will be getting a higher configuration than I did on my S and otherwise would to ensure I get the credit.

 

[Bimbels]

"Loyalty begets loyalty" - Elon Musk.

 

[JQ11]

What's your best guess on how many current Tesla owners in the US reserved a 3 on Day 1 in the store (not later than night online)?

 

[Bimbels]

What's your best guess on how many current Tesla owners in the US reserved a 3 on Day 1 in the store (not later than night online)?

Personally- no idea. I was early in a line of roughly 200 in Dedham. (#17, arrived at 6:20am) Based on the number of Teslas pulling in, I would say there were about 10-15 of us. But I was in my car leaving by 10:10 so no idea who showed up later.

I think most owners waited to order online, at least on the east coast.

 

[Darryl]

Only Tesla knows for sure. Knowing how loyal Tesla owners are and since each current/prior Tesla owner can reserve up to two Model 3's and get preferential treatment, I would guess more than 100k cars are reserved by current owners. As a whole I also think existing Tesla Roadster, Model X and S owners will order "loaded" cars moving their orders to the top of the production list. They are now are saying there will probably be a total of over 550k orders by the time production starts. With prior and future Model S and X orders there will probably be less than 100,000 of the 550,000 cars eligible for the $7,500 Federal Rebate.
________________________________________
Register your Model 3 reservation on Model3Tracker.info .

 

[ohmman]

I ordered online, figuring that if I did indeed get priority, there was no reason to be in store. Plus, I was out of the country..

 

[Cyclone]

I ordered online, figuring that if I did indeed get priority, there was no reason to be in store. Plus, I was out of the country..

Me too! I was over the Atlantic chatting with my friends in line and did my reservation online once I landed and got my bags.

 

[Canuck]

I saw no reason to order at the store when owners get priority so I ordered online too.

 

[MP3Mike]

Maybe only owners who ordered in store will get priority. Or maybe they will only get priority over the same class of orders. i.e Owners@Store, @Store, Owners Online, Online. (With each category also getting prioritized by region/option load.)

 

[ELRev]

I sat 5th in line overnight at my local store, and out of the 15-or-so people I took note of before falling asleep, two of them were current Tesla owners. They happened to be the people on either side of me. This is not scientific at all, but it definitely seemed as though the vast majority of campers-out were non-owners, though many more current owners may have showed up at some time during the day to reserve theirs as well. I definitely would have.

 

[Canuck]

Maybe only owners who ordered in store will get priority. Or maybe they will only get priority over the same class of orders. i.e Owners@Store, @Store, Owners Online, Online. (With each category also getting prioritized by region/option load.)

I think the priority will go this way:

1. Owners with most options;
2. Owners by priority of order;
3. Public with most options;
4. Public by priority of order.

Pricing of options, I hope the Model 3 is reasonable.

 

[smak]

I think the priority will go this way:

1. Owners with most options;
2. Owners by priority of order;
3. Public with most options;
4. Public by priority of order.

Pricing of options, I hope the Model 3 is reasonable.

But which options?

I could get the standard battery, with tons of options, and my car could be more expensive than a better battery with less options.

Who gets there car first all else being the same?

-smak-