Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Poll: Tesla US EV Federal Tax Credit ends Q1 or Q2 ???

Will the US EV Federal Tax Credit reach it's 200,000 phaseout milestone in Q1 or Q2 2018?

  • Q1 2018

    Votes: 8 8.4%
  • Q2 2018

    Votes: 87 91.6%

  • Total voters
    95
  • Poll closed .
This site may earn commission on affiliate links.
Not a great idea logistically, will be cheaper to rent space near delivery region
For a double truck shipment, the only delta is the extra time/ mileage from a direct route.
GF1 is a 4-5 trip from Fremont, so a car hauler can do one round trip a day. Any further and it's a day and a half, shorter and it's wasted time. I-80 is not a bad route for further transport East.
There is also the vector of GF1 employees who wanted P or AWD.
There is a rail spur near GF1 also, for the combo truck-train-truck method. Current train yard is Richmond, a little over 2 hours away from Fremont.
 
Not a great idea logistically, will be cheaper to rent space near delivery region

For any delivery that would near the blue route in the map below the Nevada location is not out of the way compared to the distance of the normal route of the car carriers. And it's much more secure at the Gigafactory with 24/7 guards in a low population density zone than to put them in major cities all over the US.

Pretty much all of Florida, Georgia, Tennessee, Missouri, and Nebraska are covered well by that route. Carriers can branch off the main route in Nebraska for coverage of most anything east of the Mississippi. Staying North to cover Iowa, Illinois, Indiana, Ohio and the Northeast corridor.

Sure anything going to Arizona, New Mexico, Texas, or Louisiana shouldn't go to the Nevada lot.

But there is room for a lot that would be able to go that way without wasting much time/distance.

sparkstomiami.PNG
 
Last edited:
  • Funny
Reactions: FlatSix911
Tesla will be making some US deliveries this month. They need to stay below 6000, but months over 6000 are very, very recent. February 2018 was only 4600 cars. March was over 60K, but April was barely over 6K. All they need is deliveries look more like February than May to stay under 6K this month. Tesla almost certainly knows exactly where they are in the delivery numbers. The biggest danger is someone locally going rogue and delivering some cars that should be delivered next month.

They want to move as many cars as they can to get up to but not cross the line. Not only do deliveries this month cut down on the stored inventory at the end of the month, it's also revenue this month.

Tesla deliveries are not linear ... they ramp up and peak in the last month of every quarter.
Based on the most recent quarter ending March 2018, the total Model S and X deliveries were 6,200.
Let's hope that Tesla holds off on all US deliveries in June ... it's going to be very close to the 200K limit! :cool:

inkedmay-2018-us-sales_li-jpg.307971
 
Tesla deliveries are not linear ... they ramp up and peak in the last month of every quarter.
Based on the most recent quarter ending March 2018, the total Model S and X deliveries were 6,200.
Let's hope that Tesla holds off on all US deliveries in June ... it's going to be very close to the 200K limit! :cool:

inkedmay-2018-us-sales_li-jpg.307971

Based on stats yea it doesn't look like we'll stay under 200k. However we're talking about Elon Musk who seems like the type of person to maximize the credit, profits be darned.

Elon Musk on Twitter

loyalty.PNG


Obviously they are going to deliver some cars in the US. The question is will they only deliver up to 199,999 (minus some margin just in case?) then just stop or not? Based on how we're less than 1 month away and his leadership style I would say that is more likely than you think.
 
For any delivery that would near the blue route in the map below the Nevada location is not out of the way compared to the distance of the normal route of the car carriers. And it's much more secure at the Gigafactory with 24/7 guards in a low population density zone than to put them in major cities all over the US.

Pretty much all of Florida, Georgia, Tennessee, Missouri, and Nebraska are covered well by that route. Carriers can branch off the main route in Nebraska for coverage of most anything east of the Mississippi. Staying North to cover Iowa, Illinois, Indiana, Ohio and the Northeast corridor.

Sure anything going to Arizona, New Mexico, Texas, or Louisiana shouldn't go to the Nevada lot.

But there is room for a lot that would be able to go that way without wasting much time/distance.

View attachment 307972
Tesla use rail to go out from Richmond to the East coast, they don't truck to the East coast
 
For any delivery that would near the blue route in the map below the Nevada location is not out of the way compared to the distance of the normal route of the car carriers. And it's much more secure at the Gigafactory with 24/7 guards in a low population density zone than to put them in major cities all over the US.

Pretty much all of Florida, Georgia, Tennessee, Missouri, and Nebraska are covered well by that route. Carriers can branch off the main route in Nebraska for coverage of most anything east of the Mississippi. Staying North to cover Iowa, Illinois, Indiana, Ohio and the Northeast corridor.

Sure anything going to Arizona, New Mexico, Texas, or Louisiana shouldn't go to the Nevada lot.

But there is room for a lot that would be able to go that way without wasting much time/distance.

View attachment 307972

Storing cars at the GF may just be a regional plan. As @kengchang said Tesla only delivers by truck to the West Coast and possibly as far as Salt Lake City. Everything else goes on a train or to the shipping terminal in the Bay Area (for Asia, Australia, and New Zealand, European cars get put on a train too). There are some car loading terminals they could truck cars to though. There is one in Salt Lake City and another in Las Vegas.

https://www.aar.com/standards/pdfs/2016 AAR Terminal Guide.pdf

The car terminal closest to the Tesla factory is Richmond, CA which is where the cars destined for rail travel go.

Tesla deliveries are not linear ... they ramp up and peak in the last month of every quarter.
Based on the most recent quarter ending March 2018, the total Model S and X deliveries were 6,200.
Let's hope that Tesla holds off on all US deliveries in June ... it's going to be very close to the 200K limit! :cool:

inkedmay-2018-us-sales_li-jpg.307971

Tesla only does that to please investors. They build cars destined for overseas in the first half of a quarter, then focus on American production in the second half. This allows them to deliver most of the cars they build in the same quarter they were built. It looks good on the financial statements.

There is nothing set in stone they do it that way and I expect they will mix it up this quarter. It will make the Q2 financials look terrible, but the Q3 financials will be probably the best quarter in the company's history. I would not be surprised at all if Tesla's US deliveries for June were somewhere in the ballpark of February 2018.

This is probably a need to know kind of thing and the employees at the stores and delivery centers may not know what's going on behind the scenes. Anything sent out to all employees gets leaked almost immediately, so the upper management probably doesn't want anyone to know until the plan is done. If word got out about the plan, the FUDsters would harp on it all month and it might depress orders the rest of the month. The law is silent about ginning the incentive system to maximize the taper, but that wouldn't stop someone determined to hurt Tesla dragging them into court.
 
There is nothing set in stone they do it that way and I expect they will mix it up this quarter. It will make the Q2 financials look terrible, but the Q3 financials will be probably the best quarter in the company's history. I would not be surprised at all if Tesla's US deliveries for June were somewhere in the ballpark of February 2018.
I don't think Q2 will be worse than Q1 on the car side. Tesla has built and sold more Model 3 than Q1 in the US and plus the 2K+ delivery to Canada (Assuming S/X delivery is flat). Margin should also improve on the Model 3. The cash burn should be quite less than Q1.
 
I believe no one will doubt that Tesla exceeds 200,000 car sale limit in US by now, it is so critical to selling as many cars as possible to keep Telsa float and becomes profitable this year. As today, there is no reservation needed for folks in North America to order Model 3 now, Tesla is trying their best to sell up to their maximum capacity for anyone in US to capture the last opportunity for $7500 tax credit before Sept 30!
 
I believe no one will doubt that Tesla exceeds 200,000 car sale limit in US by now, it is so critical to selling as many cars as possible to keep Telsa float and becomes profitable this year. As today, there is no reservation needed for folks in North America to order Model 3 now, Tesla is trying their best to sell up to their maximum capacity for anyone in US to capture the last opportunity for $7500 tax credit before Sept 30!
If they exceeded 200k sales to consumers/ taxpayers after June 30, the 7,500 credit is good through the end if the year.
 
  • Funny
Reactions: FlatSix911
If they exceeded 200k sales to consumers/ taxpayers after June 30, the 7,500 credit is good through the end if the year.
No, The phaseout calendar starts once 200,000th qualifying vehicle is delivered. Buyers still get the full tax credit in that quarter and the quarter that follows. Tesla reached 200,000th in Q2, the Telsa buyer will get full $7500 for Q3 delivery only!
 
No, Sept 30 it is. Tesla sold 200,000th EV sometime in June, that is Q2, so federal tax credit will be halfed in Q4 2018.

No announcement has been made one way or another on whether Tesla has hit the 200K. There is another thread on when the tax credit expires and there has been a lot of parsing of the legal language:
US Federal $7,500 Electric Vehicle Credit Expiry Date By Automaker

One key element of the original law is the car is sold for tax credit purposes based on when the title is transferred to the owner or financial institution, not when the paperwork is signed and the car handed over to the owner. Most states have a 10 day window to file the title transfer after a sale, so Tesla may have slow walked many of the late June sales so the titles don't transfer until early July. Another element of the law was the car needed to be put into service primarily in the US and cars bought in the US and exported to other countries don't count. At least some cars fell under that provision.

There were a lot of signs Tesla was slowing deliveries in late June and people in the know had mentioned top management was monitoring the number of US deliveries very closely. If Tesla blew it and went over 200K in June, they really screwed up big time. I'm 90% sure they didn't and the $7500 credit will last until Dec 31.

Tesla is probably waiting for confirmation from the IRS before saying anything.