POLL: If the GOP tax reform kills the $7500 tax credit, will you still buy?

[Uncle Paul]

Since Tesla has in the past reduced the prices of their vehicles as their costs of production have come down, maybe they will be able to lower their prices a bit when the tax relief goes away.

Henry Ford built his entire empire on this principal. As he got the costs of production down, he both lowered the prices of his Model T while also increasing the salary he was paying his assemblers.

This expanded his market place, as more and more people could afford his cars.

At the same time, he inproved his quality and interchangebility of parts. Changed the World he did.

 

[turnbowm]

Since Tesla has in the past reduced the prices of their vehicles as their costs of production have come down, maybe they will be able to lower their prices a bit when the tax relief goes away.

Henry Ford built his entire empire on this principal. As he got the costs of production down, he both lowered the prices of his Model T while also increasing the salary he was paying his assemblers.

This expanded his market place, as more and more people could afford his cars.

At the same time, he inproved his quality and interchangebility of parts. Changed the World he did.

Henry Ford was an exceptional man. His assembly line concept for car manufacturing was sheer genius.

 

[ItsNotAboutTheMoney]

Henry Ford was an exceptional man. His assembly line concept for car manufacturing was sheer genius.

Ransom E. Olds - Wikipedia
He's credited with creating the assembly line.

Ford's key improvement was to _move_ the assembly line.

 

[Trips]

Since Tesla has in the past reduced the prices of their vehicles as their costs of production have come down, maybe they will be able to lower their prices a bit when the tax relief goes away.

Henry Ford built his entire empire on this principal. As he got the costs of production down, he both lowered the prices of his Model T while also increasing the salary he was paying his assemblers.

This expanded his market place, as more and more people could afford his cars.

At the same time, he inproved his quality and interchangebility of parts. Changed the World he did.

That could be true if they were not constantly updating the car. Apple could have the original iPhone down to $20 if they were still making the same phone. The same could be said if Tesla was still producing the Model S40 that originally cost $57,400. I believe that Elon said that $35k was the lowest they would ever go without sacrificing quality.

 

[daniel]

... I think that it's going to be a long time before the base model ($35,000) becomes available.

The standard-range version for $35,000 will be available in mid-2018 for this owner with a Day-2 reservation*. Day-1 reservationists will likely be able to get it sooner. People who reserve today will be able to get the $35,000 version in a year, as early as they'd have been able to get the LR version. That is a "long time" if you want the car yesterday, as most of us do. But really, not that long at all.

Yeah, a lot of people are disappointed that most of the options will be introduced gradually. But when you consider that Tesla builds the best EVs on the market, and the safest cars of any type, and this will only be their 4th model, and their first truly mass-market car, I think the way they are rolling it out is very reasonable.

* I'm leaning toward getting the car as soon as they offer it to me, though I could end up waiting for the dual-motor or the dual-motor Performance version, without the premium upgrades.

 

[davidc18]

when the tax credit is over the value of our used teslas should go up.

 

[fluxemag]

I had planned on trading my current lease with 18 months left and getting the Model 3 as quickly as possible in order to get the tax credit. If I had to choose right now, I would just wait the 18 months and see what's available then.

Overall, the elimination of the tax credit wouldn't impact Tesla nearly as much as it would new entrants to the electric vehicle market, since it would have expired in 2018 anyway for Tesla.

This is probably the least offensive part of the Republican tax fraud.

 

[Xenoilphobe]

I would buy used and let some other owner eat the depreciation.

 

[daniel]

I would buy used and let some other owner eat the depreciation.

That's always the most economical way to get a car. The down side, with a new model like the 3, is that you have to wait until there are used ones available. A half a million people don't want to wait that long. (Or have other reasons for not wanting a used car.)

 

[Xenoilphobe]

True, but the S has a lot more functionality, has the bugs worked out and can be bought used fairly cheap.

I bought my S, from the first owner with a $40+K savings... I will do the same thing for the next one as well.. P100D will be about $80K in a year or two and will pick one up then..

 

[grashelm]

I think that the loss of the federal tax rebate will be a deal-breaker for many who simply can't afford the M3 without a subsidy. That's especially true right now because the only M3s available are $49,000 (LR & PUP) before tax and license. I think that it's going to be a long time before the base model ($35,000) becomes available.

Perhaps that may prove to be true, however you have to consider that there are some who can indeed afford the first production model ($49K), but choose not to purchase without the tax credit (it's not a subsidy). I for one happen to fall in that camp (I can pay cash for a first production model) based purely on my assessment of the value of the car. If the tax credit goes away, I'll wait and buy used.

 

[Thomas Edison]

Perhaps that may prove to be true, however you have to consider that there are some who can indeed afford the first production model ($49K), but choose not to purchase without the tax credit (it's not a subsidy). I for one happen to fall in that camp (I can pay cash for a first production model) based purely on my assessment of the value of the car. If the tax credit goes away, I'll wait and buy used.

Samezies

 

[tsla007]

Interesting to note that 22% would drop out. That's a significant number but would ultimately help tesla meet demand.
550kX.22=~100k cars.

 

[McHoffa]

Interesting to note that 22% would drop out. That's a significant number but would ultimately help tesla meet demand.
550kX.22=~100k cars.

Kinda sad that 22% are only buying because of the tax credit though

 

[daniel]

True, but the S has a lot more functionality, has the bugs worked out and can be bought used fairly cheap.

I bought my S, from the first owner with a $40+K savings... I will do the same thing for the next one as well.. P100D will be about $80K in a year or two and will pick one up then..

The Model S is definitely more car, and buying one used is an excellent choice if you are comfortable with such a large car. (I'm not.) Of course, a used Model 3 will be a lot less expensive than a used Model S. And it is less car. I'd have bought a Model S years ago if it had been the size of my 2004 Prius, or even the size of the Model 3. They just made that car too dadblamed big for me.

Kinda sad that 22% are only buying because of the tax credit though

Not surprising, really, and I'd express it differently: I'd say it's encouraging that 78% will buy it even at the higher overall cost. When people lined up on Day 1 they thought they were reserving a car with a base price of $35,000 minus $7,500. That's $27,500. An awful lot of people can afford a $27,500 car but not a $35,000 car. That's just the financial reality for a lot of people. I think (?) that Musk said Tesla would never sell a less-expensive car, instead leaving the low end of the EV market to other car makers like Nissan. It's too bad that a lot of EV enthusiasts will have to settle for a non-Tesla. But the fact is that if Tesla offered a car for the price of a Leaf, it probably wouldn't be that much better than a Leaf. Quality and range both cost money.

I once saw a painting in an art gallery that was so beautiful that to my eye it could have been a Renoir. (It wasn't.) I wanted that painting so badly, but the price tag was $22,000 and I was not willing to pay that much for a painting. The gallery attendant put the hard-sell on me, saying that if you really like a piece of art it should not matter what it cost. But cost does matter. Even if you have the money, there is the opportunity cost. And some folks just don't have the money.

And that will be the case with this car. The opportunity cost of the extra $7,500 is significant, and some folks just don't have the extra $7,500, or don't have enough income for the higher payments. Maybe next time around we'll elect a government that believes in science and understands the importance of getting off of fossil fuels and the balance of incentives will switch to support for sustainable technologies.

 

[Chopr147]

I agree many will cancel their registration but I think in the tax credit will not affect the sales much at all. 22% may cancel but it will not hurt Tesla at all. If their plan works well they will be selling a million or more per year. The tax credit is not needed. Sure I would love to get money back but to me it's a bonus

 

[turnbowm]

.

Perhaps that may prove to be true, however you have to consider that there are some who can indeed afford the first production model ($49K), but choose not to purchase without the tax credit (it's not a subsidy). I for one happen to fall in that camp (I can pay cash for a first production model) based purely on my assessment of the value of the car. If the tax credit goes away, I'll wait and buy used.

I'm in the same position financially but have always been a "value" guy. The probable loss of the tax rebate definitely changes the equation and I'm still not sure what I'm going to do. I definitely will not spend $49,000 to replace the wife's Volt.

 

[Foxhound199]

After a bunch of agonizing, I've decided I'm not changing anything about my order because of this. It's not because it will be easy to replace the funds budgeted with the credit, but because it will be a reminder that it's me they're pilfering the money from, not Tesla. If it's their prerogative to hurt hard working taxpayers, so be it. But they're not stopping EVs.

 

[daniel]

After a bunch of agonizing, I've decided I'm not changing anything about my order because of this. It's not because it will be easy to replace the funds budgeted with the credit, but because it will be a reminder that it's me they're pilfering the money from, not Tesla. If it's their prerogative to hurt hard working taxpayers, so be it. But they're not stopping EVs.

If we begin from the premise the paying taxes is a responsibility, to fund the government services we demand, then rescinding a tax credit is not "pilfering." In fact, the tax credit is "pilfering" from all the people who pay taxes but cannot afford to buy a new car.

Neither you nor anybody else had a "right" to have your car purchase subsidized to the tune of $7,500 of other people's tax money. Rather, somebody came up with the hare-brained notion that we'd get more EVs on the road if the government subsidized their purchase at a time when demand already exceeds supply. (Same thing happened with the Prius.) If the Republicans do rescind the tax credit, it will be the first intelligent thing they've done since Lincoln freed the slaves.

 

[run-the-joules]

I once saw a painting in an art gallery that was so beautiful that to my eye it could have been a Renoir. (It wasn't.) I wanted that painting so badly, but the price tag was $22,000 and I was not willing to pay that much for a painting. The gallery attendant put the hard-sell on me, saying that if you really like a piece of art it should not matter what it cost.

…and this is why if I like a piece of art, I just buy a print. Looks the same, costs a fraction as much, works the same way.