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Official: 7,500 Tax Credit for deliveries before Dec 31 2018

Discussion in 'Model 3' started by autospy, Jul 12, 2018.

  1. autospy

    autospy Member

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    Tesla updated the EV incentives page.

    Electric Vehicle Incentives

    The following federal income tax credits are available to anyone who purchases a new Tesla Model S, Model X or Model 3:

    Federal Tax Credit For Vehicles Delivered
    $7,500 On or before December 31, 2018
    $3,750 January 1 to June 30, 2019
    $1,875 July 1 to December 31, 2019
     
    • Informative x 7
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  2. ecarfan

    ecarfan Well-Known Member

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    Thanks for posting that news. It’s good that Tesla update that page, but what is not stated is the the US federal EV incentive does not end abruptly on the dates specified, it is phased out gradually.

    The Federal EV Tax Credit And You — CleanTechnica Explains It All | CleanTechnica

    Quote: “The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period.”
     
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  3. a.void

    a.void Member

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    It's been reported by news sources now (Electrec, etc) that they officially hit the 200k in July. That's why Tesla officially updated their page to show the true credits vs. delivery windows.
     
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  4. shrspeedblade

    shrspeedblade Member

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    I don't understand your post ecarfan, what is described is actually how it phases out.
     
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  5. voip-ninja

    voip-ninja Give me some sugar baby

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    So where are those idiots at that EV blog that insisted they had empirical mathematical death star evidence that Tesla hit 200K deliveries in June?
     
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  6. iwannam3

    iwannam3 Member

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    What is the end of the credit going to do to TSLA stock price?
     
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  7. dhanson865

    dhanson865 Active Member

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    You seem to have cause and effect reversed. News outlets erroneously posted that they hit 200,000 in June, now Tesla has put out a new statement and news outlets have to correct their past errors.
     
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  8. dhanson865

    dhanson865 Active Member

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    Nothing, or next to nothing, it's nearly immaterial to the stock price.
     
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  9. mtndrew1

    mtndrew1 Member

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    Jeez they’re gonna sell everything they can pop out of Fremont in the next six months which will pave the way for the kind of scale to make the $35k model a profitable reality.

    The timing is perfect.
     
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  10. Thomas Edison

    Thomas Edison Active Member

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  11. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

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    The scale won't matter so much if the Alien Tent doesn't lead to manufacturing efficiency across the lines.

    How much of a boost those 3 extra months are will depend on how much efficiency Tesla can add to its production in Q3.
     
  12. chronopc

    chronopc Active Member

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    It would only effect the stock price if people stop buying Teslas.
     
  13. ℬête Noire

    ℬête Noire Active Member

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    Just operating at something near 4K/week average would represent an enormous efficiency boost, because of the invested capital/bond/lights turned on/staff overhead.
     
  14. ChrisH

    ChrisH Active Member

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    For sure. I’m still anxious I won’t get an SR by June 30th because I reserved too late but people seem to be ignoring the fact that Tesla is over doubling their production year over year this year. It’s an amazing achievement.
     
  15. kengchang

    kengchang Member

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    Be nice! They gotta keep lowballing the first 2 months and backfill on the 3rd month to stay relevant and claim how close their estimate was.
     
  16. chronopc

    chronopc Active Member

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    I'll be curious to see how many first day reservation holders can get the SR and take advantage of the full federal tax rebate. I didn't like my chances so that's one of the reasons that I went with the first production. I'm really glad I did though because I really enjoy having the 310 miles of range for my road trips. The extra 90 miles gives me the option to only stop once instead of having to stop twice during my travels between SF and LA.
     
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  17. remlemasi

    remlemasi Member

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    Further to that point, the website says LR RWD in 3-5 months. Are prospective buyers, simply taking a $2,500 gamble that they'll receive the full $7,500 credit?

    I know production is ramping up very aggressively, but with Tesla's track record for over-promising and under-delivering, how can anyone be sure they will get the full tax credit? Many buyers may be planning financially to receive that extra, $3,750 at tax time.
     
  18. chronopc

    chronopc Active Member

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    If I had to make a guess, I would say that no one getting the SR will get the full federal tax credit. They are still having production problems so they will be focusing on the expensive builds before producing any SR.
     
  19. Moderatefan

    Moderatefan Member

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    Not sure what $2,500 you're talking about.
    It's super-easy. Most of us had a chance to order before 7/1. That's 6 months from EOY and 3-5 months delivery estimate, so should pan out ok.
    If you waited a month and got Nov-Dec estimate, that's your problem and a risk you created for yourself by delaying. This is a timeframe that likely any new orders get now, still pretty good odds for someone who didn't wait in line for 2+ years.

    Our only advantage as line waiters for most people is 1 month head start as far as delivery estimates and free LTE.

    It seems on the other hand that new people risk $1,000 less in deposit money in case some emergency comes up and you have to cancel the order.
     
  20. remlemasi

    remlemasi Member

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    I agree with you regarding SR, but I was more questioning how solid the 3-5 month window for new (no reservation, no invite, no config) LR RWD buyers is? This is so much more relevant now that the credit expiry day has been officially announced.

    If new buyer Bob places a brand new order for LR RWD today, and the delivery slips by just one month, he’s now in January and short the $3,750 credit he was expecting to take car tax time.

    I haven’t read the contracts/disclaimers very closely yet, but I’m pretty sure Tesla won’t be reimbursing him...
     

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