Potential tax credit impact on prices

[hlin07]

Tesla will add EAP and $5000 to the purchase price, and call it included. Simple. They already do this.

HAHA, good one. The new autopilot and FSD will be *just* 5k on top.

 

[GeorgeC1]

Trump hated Elon. Changing the tax credit has bipartisan support. It will pass. The only question is what the final form will be.

 

[Mr X]

Trump hated Elon. Changing the tax credit has bipartisan support. It will pass. The only question is what the final form will be.

You call that hate?

 

[GeorgeC1]

Old history, they had a falling out over the Paris accords. If you don’t lockstep parrot Trumps views you go from friend to enemy overnight. Simply look at why he fired so much of his cabinet.

Elon Musk to Trump: You quit Paris, so I quit you

 

[VT_EE]

The resale value of recently purchased Tesla’s would certainly take a hit, but I don’t think older Model 3s will be affected much. People looking to buy a $20-$30k Tesla that has relatively low mileage and good range, don’t have a lot of options except a 3-4 year old Model 3.

 

[CapeOne]

Old history, they had a falling out over the Paris accords. If you don’t lockstep parrot Trumps views you go from friend to enemy overnight. Simply look at why he fired so much of his cabinet.

Elon Musk to Trump: You quit Paris, so I quit you

This was from 2017. The CNBC interview posted above was only a little over a year ago. I don't think Trump's opposition to the EV tax credit had anything to do with Musk.

 

[EXOTIC1]

7K off new cyber truck a possibility ?

 

[Jmp123]

Tesla will raise the price commensurate with the tax credit. They lowered prices when the tax credit went away, expect the opposite when/if a new credit passes. Anyone who thinks Elon is just going to pass that money to the consumer is smoking something.

 

[jeremymc7]

Maybe the same mix he was smoking with Rogan.

 

[CapeOne]

Tesla will raise the price commensurate with the tax credit. They lowered prices when the tax credit went away, expect the opposite when/if a new credit passes. Anyone who thinks Elon is just going to pass that money to the consumer is smoking something.

Possibly but Tesla also raises and lowers prices unrelated to the federal tax credit e.g., the base price of the MS LR+ dropped $10k in 2020 and then was increased $10k in 2021 for the redesigned model. Just this week, Tesla lowered base prices on some M3 and MY models and increased on others.

 

[TespaceX]

The resale value of recently purchased Tesla’s would certainly take a hit, but I don’t think older Model 3s will be affected much. People looking to buy a $20-$30k Tesla that has relatively low mileage and good range, don’t have a lot of options except a 3-4 year old Model 3.

So, the price of a used SR would be the same as a used LR on the private market? Heh


I’ve yet to see any 3 from 2018 break $30K mark. Everyone trying to sell those things close to the same price as a new one because the prices have dropped so much since they came out.

 

[ElectricIAC]

There is no tax credit. There is a proposed tax credit. Which is not going to be $7K at the end of the day.

They can’t even get 1,400 measily bucks out to folks.

 

[mierwins]

They can’t even get 1,400 measily bucks out to folks.

If the housing market is any indicator then they don't need to send the $1400 or even $400 to anyone! Seriously, how can we still be in a pandemic and have high unemployment while houses are selling for premiums not seen since 2006? You'd be hard pressed to find a house listed for more than a week that isn't under contract in any major metro area. This is insane!

 

[ElectricIAC]

If the housing market is any indicator then they don't need to send the $1400 or even $400 to anyone! Seriously, how can we still be in a pandemic and have high unemployment while houses are selling for premiums not seen since 2006? You'd be hard pressed to find a house listed for more than a week that isn't under contract in any major metro area. This is insane!

Inflation and cheap to borrow money (Real inflation, not indexed)

My opinion? If you’re in a position to borrow on hard assets, do it at a fixed rate while the dollar is still worth anything. Our next Tesla will probably be bought with BTC…

 

[CapeOne]

If the housing market is any indicator then they don't need to send the $1400 or even $400 to anyone! Seriously, how can we still be in a pandemic and have high unemployment while houses are selling for premiums not seen since 2006? You'd be hard pressed to find a house listed for more than a week that isn't under contract in any major metro area. This is insane!

Record low interest rates are driving a lot of the housing demand. You can borrow significantly more (get significantly more house) at today's rates compared to decades past.

 

[gearbox]

Agreed.. these are certainly new times we are seeing and this whole drop every 8-year cycle is not happening as feds are going to push this off as long as possible. And mortgage forbearance was just extended.

where should I follow if they do have a $7500 credit and ill try to order before the price increase

 

[TespaceX]

If the housing market is any indicator then they don't need to send the $1400 or even $400 to anyone! Seriously, how can we still be in a pandemic and have high unemployment while houses are selling for premiums not seen since 2006? You'd be hard pressed to find a house listed for more than a week that isn't under contract in any major metro area. This is insane!

Ughhh.... because the recovery has been K-shaped. People who were low income are even more low income nowadays. Any stimulus isn’t meant for the middle upper+ class. Way to sound like someone who has it all working for them.

Record low interest rates are driving a lot of the housing demand. You can borrow significantly more (get significantly more house) at today's rates compared to decades past.

I would still rather pay decades past prices on a home with a high interest rate. You can always refinance to lower rates but you can never get a refund on a home purchase.

 

[CapeOne]

I would still rather pay decades past prices on a home with a high interest rate. You can always refinance to lower rates but you can never get a refund on a home purchase.

There's a mix of things going on right now. Many have chosen to refinance to take advantage of the record low rates while others have chosen to upgrade or downsize. Being able to sell current house at an increased price can help balance out some of the potentially increased price of the next house while still being able to take advantage of low rates. Rates that may never be this low again. Whether or not buying now makes good financial sense will depend on one's situation, local market and where things go from here. If the housing market collapses, it's unfortunately going to have some sort of impact on all homeowners whether they purchased recently or years ago.

 

[TespaceX]

There's a mix of things going on right now. Many have chosen to refinance to take advantage of the record low rates while others have chosen to upgrade or downsize. Being able to sell current house at an increased price can help balance out some of the potentially increased price of the next house while still being able to take advantage of low rates. Rates that may never be this low again. Whether or not buying now makes good financial sense will depend on one's situation, local market and where things go from here. If the housing market collapses, it's unfortunately going to have some sort of impact on all homeowners whether they purchased recently or years ago.

Yea.... I would still pay for decades past prices than have lower interest.
Also, if you move now, the increase in property taxes (at least in CA), will most likely negate any rate reductions, especially if you’re moving up.

 

[TespaceX]

XS

There's a mix of things going on right now. Many have chosen to refinance to take advantage of the record low rates while others have chosen to upgrade or downsize. Being able to sell current house at an increased price can help balance out some of the potentially increased price of the next house while still being able to take advantage of low rates. Rates that may never be this low again. Whether or not buying now makes good financial sense will depend on one's situation, local market and where things go from here. If the housing market collapses, it's unfortunately going to have some sort of impact on all homeowners whether they purchased recently or years ago.

By the way, rates today are just about where they were back in the low of 2012. And home prices were A LOT cheaper back then. So, this isn’t some historically great time to sell/buy a home.