No tax credit good for Tesla?

[PhysicsGuy85]

Correct me if I’m wrong somehow, but would the EV tax credit going away actually be good for Tesla? They are about to max out anyways, and if it stuck around, it would then be a HUGE selling point for competitors EV’s like GM, Nissan, etc. since they will not hit their 200,000th EV for years to come.

I have heard hearsay about Musk actually wanting the EV tax credit gone, but have never seen any evidence of this.

 

[azred]

Hard to say. Assuming this move causes sales of EVs by competitors to drop, is that good for Tesla? Short term, sure but perhaps not long term. Isn’t is it better for Tesla long term if there is vibrant competition in EV market? Who knows.

 

[Tam]

...wanting the EV tax credit gone...

He meant ZEV--zero-emission vehicle credits for corporations, not individual owners tax credits.

 

[ElecFan]

Individual owners tax credits are good for EV's. And if there is something Elon has communicated it is his passion for sustainable transport/energy-usage, so I expect him not to be too happy with the tax plans. He'll probably not be very surprised. It is after all Trump.

 

[PhysicsGuy85]

The more I think about this I feel like it might actually be a good thing. Tesla, which obviously makes FAR superior EV’s than the competition, has almost exhausted their eligibility for the tax credit. Thus, if the tax credit goes away now, the EV market would be on even ground. Tesla has already achieved the goal of making EV’s viable, popular, and in demand. That’s not going away. Tesla might suffer though, if more “mainstream” buyers (not enthusiasts/fans like myself) are lured to the cheaper options like GM and Nissan because they can save $7500 from them. Thus it would perpetuate the sale of crappy EV’s, as well as worst case scenario cause major financial problems for Tesla with weak Model 3 sales.

 

[Petra]

The more I think about this I feel like it might actually be a good thing. Tesla, which obviously makes FAR superior EV’s than the competition, has almost exhausted their eligibility for the tax credit. Thus, if the tax credit goes away now, the EV market would be on even ground. Tesla has already achieved the goal of making EV’s viable, popular, and in demand. That’s not going away. Tesla might suffer though, if more “mainstream” buyers (not enthusiasts/fans like myself) are lured to the cheaper options like GM and Nissan because they can save $7500 from them. Thus it would perpetuate the sale of crappy EV’s, as well as worst case scenario cause major financial problems for Tesla with weak Model 3 sales.

On the flip side, in the short term, the credit going away could cost Tesla double to triple digit millions in cancellations and reduced option sales...

 

[Super_Popular]

weak Model 3 sales.

Are the sales for Model 3 weak?

 

[stopcrazypp]

Correct me if I’m wrong somehow, but would the EV tax credit going away actually be good for Tesla? They are about to max out anyways, and if it stuck around, it would then be a HUGE selling point for competitors EV’s like GM, Nissan, etc. since they will not hit their 200,000th EV for years to come.

I have heard hearsay about Musk actually wanting the EV tax credit gone, but have never seen any evidence of this.

Actually GM and Nissan aren't good examples. You actually picked the two non-Tesla makes that will have their 200,000th plug-in the soonest. GM approaching 150k sold already (keep in mind the Volt counts too). Nissan have also passed 100k.

As for how much it helps or hurts Tesla, it really depends if any will make a serious Model 3 competitor in the premium EV market. So far there haven't really been any in the horizon.

 

[T34ME]

On the flip side, in the short term, the credit going away could cost Tesla double to triple digit millions in cancellations and reduced option sales...

I project about 20% in initial cancellations and 50% new reservations from people who consider the other brands without the tax credit.

 

[gregd]

In my letter to the congress critters, I suggested that if they feel the need to get rid of the tax credit, that they should also get rid of the subsidies given to the oil companies. Level playing field is good for everyone. After all, that's what the $7,500 represents.

I doubt they will listen, but it was worth the try.

 

[ratsbew]

I agree with you. Tesla has such huge demand for the Model 3 that the tax credit won't hurt them at all even if there are 100,000 cancellations. Once the Model 3 hits the road in numbers and the general public sees this beautiful and futuristic car there will be no turning back. These things will sell in the millions.

 

[d21mike]

In my letter to the congress critters, I suggested that if they feel the need to get rid of the tax credit, that they should also get rid of the subsidies given to the oil companies. Level playing field is good for everyone. After all, that's what the $7,500 represents.

I doubt they will listen, but it was worth the try.

Could you provide more information on the oil company subsidies? I am pretty new to all of this and I have seen your type of statement quite a bit in these forums.

 

[TEG]

They were hoping to replace the tax credit with a point of sale incentive, but that bill died already.

 

[Tam]

...oil...

Fossil-Fuel Friendly Tax Plan Spares Oil, Not Solar or Tesla

 

[shokunin]

I think ending the tax credit would be good for Tesla. Those automakers have been sitting on the sidelines and predicting EV's to fail and Tesla to go bankrupt shouldn't benefit from the those who led the industry (Tesla, Nissan, and GM) and changed public perceptions about EV's in general.

This will force all the other automakers to be price competitive instead of relying on the incentives to drive sales.

 

[gregd]

They were hoping to replace the tax credit with a point of sale incentive, but that bill died already.

...and true to form, neglected to link the two. As for the GAO reference, I first read about it here. Haven't found a primary source as yet.

 

[Shock-On-T]

A flat tax credit is much better for cheaper cars than for expensive cars, so the removal would affect Tesla less than it would affect makers of cheaper EVs.
In the end though, removing the tax credit means fewer incentives for the fledgling EV market, which will slow it down.

 

[ElecFan]

Could you provide more information on the oil company subsidies? I am pretty new to all of this and I have seen your type of statement quite a bit in these forums.

At 3:00 there is an estimate of 2.3 billion dollars of subsidies to the oil and gas companies.

 

[flamingoezz]

It wouldn't be be bad if it happened in 18 months. It would not be good at all if it happened next month. Tesla has 500K reservations lined up, and deals with part suppliers based on that demand. I'm sure cutting those numbers will hurt the pricing they are receiving from partners, and thus the profit they'll make on the car.

Correct me if I’m wrong somehow, but would the EV tax credit going away actually be good for Tesla? They are about to max out anyways, and if it stuck around, it would then be a HUGE selling point for competitors EV’s like GM, Nissan, etc. since they will not hit their 200,000th EV for years to come.

I have heard hearsay about Musk actually wanting the EV tax credit gone, but have never seen any evidence of this.

 

[ElecFan]

Correct me if I’m wrong somehow, but would the EV tax credit going away actually be good for Tesla? They are about to max out anyways, and if it stuck around, it would then be a HUGE selling point for competitors EV’s like GM, Nissan, etc. since they will not hit their 200,000th EV for years to come.

I have heard hearsay about Musk actually wanting the EV tax credit gone, but have never seen any evidence of this.

Tesla is all about stimulating EV's. Elon Musk has never been working his butt off only for the greater benefit of himself or his company. He wants the world to transition towards a healthier, more natural, more sustainable place.
Supporting the oil and gas industry and taking away the benefits from the EV's is definitely not something he will see as the way to go forward in order to reach that sustainable future.
And of course it isn't designed to be that. Rather it's a way to keep the powerful (ice, oil, supplying) companies in control. That is no wonder with Trump at the helm.