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Pricing strategy for 2023?
- Thread starter Mike7564
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I think they will still decrease the MY 7 seater a bit and possibly $2-4k for the long range. I think there has to be a gap between the standard range and the long range by at least by $5k.
Yup.. $7500 tax credit along with other stacked bonuses... up to $7K in some states... $2K uber, $4K state incentive, $500 Costco, etc.
I met a Bolt owner at an EA location yesterday who bought a Bolt EV for $13K after incentives. He was Model 3 LR owner for about 2 years before it got totaled and needed something ASAP.
boulder.dude
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I can’t imagine any informed MY buyer taking delivery before the last 2 weeks of March unless they absolutely can’t afford to wait…
Hard to beat the Bolt if someone qualifies for additional credits. If they don't change the price, MSRP of the cheapest one is $25,600 - $7,500 Fed - $7,500 CA CVRP (if lower income after Feb 28th) = $10,600 for 259 miles range. Crazy.
ucmndd
Well-Known Member
Been a while since I looked at the numbers but I imagine the cross-section of buyers who both have $7500 in federal tax liability AND qualify as low income for the CVRP is getting pretty small.
Still a bangin deal and there are potentially other incentives out there…
I've seen posts of people doing it with 2 different tax years. I'd guess it's easier for wealthy retirees (generally low taxable income, then pull large amount from IRA 1 year) and maybe more common during covid lockdowns/firings/etc.
There's no reason to want a 5-seat over a 7-seat, the 7-seat is now cheaper than the 5-seat thanks to it qualifying for the $7500 credit.
Waiting isn't without risk, it is expected that in March the IRS will have finalized the critical mineral requirements which will likely mean that even Tesla's incentive will go from $7500 to $3750.
yikes! then Tesla will most likely lower the price. I took delivery on December 29th, but interested to see what happens with all this!
likely yes, but not before needing to purchase replacement sidewall panels and floor panels.
but those will be paid for by the increased tax credit.
remember, though, that the tax credit is a CREDIT against taxes owed, NOT CASH.
7500 tax credit means less than 5000 in real money for most people. And it comes 15 months later after taxes are filed, not right away.
(in 2024, the incentives become a Point of Sale credit - real CASH)
Could you explain that logic? 7500 tax credit means my tax liability goes down that number (assuming it was larger than 7500), so it is real money which I'll get as a refund on my next tax filing.
Exactly. This is what a lot of people are missing. Only in 2024 will you get that amount deducted from the point of sale. If you buy in 2023, you are paying the full price or what ever it is at that time.
Some further explanation...In order to get the full $7,500 tax credit on your 2023 taxes when filing in 2024, you need to have at least $7,500 in total federal tax obligation (people frequently confuse total federal tax obligation with the payment they might have to make when filing their tax forms - that last payment is just a true-up and not an indication of what your full federal tax obligation is). I know more than one person who purchased a Tesla Model 3 under the previous tax credit, but they didn't have the full $7,500 federal tax obligation. So you can only get the amount of the tax credit that would offset your federal tax obligation. It might be $5,000, it might be $6,200, etc. There is no carryover for the tax credit, so if your federal tax obligation is less than $7,500, you don't get to claim the balance of the $7,500 in a future tax year.
You just fold down the seats, the trunk space with the seats folded is practically identical. All you miss out on is the second underfloor storage area which is small, shallow and oddly shaped.
In general a person who buys model y worth 60-70k will have income of atleast 70k which should then Qualify for full 7500 tax obligation and get refund. Again i said in general. There might be people who gift cars to someone else in thier family. That is different scenario. So in your example of tax obligation of 5000 his income would be less than 50k. It is highly unlike someone who earns 50k per year would purchase 60k car. Unless it is gift or his or her savings. So 7500 credit makes full sense.
Yes, understood, that's why I put in the assumption if having more than $7500 in tax liability.
I do wonder however if this changes to a refund at the point of purchase, the same rules will still apply, I would think that's the case. So you might get the full 7500 cash refund, but then at the time of your tax filing you'll have to pay it back partially in case your income tax liability is lower.
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