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Proceed with 2016 MODEL X order or wait for 2017 model?

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True! In my opinion; just buy the car and enjoy it while it lasts ;). I did it with my MX. I see it as any product sensitive to technological advancements. In any case, this car is more like a computer/laptop/smartphone (very expensive one that is!) regarding it's lifecycle.

Which is good. Any improvement will be implemented as soon as Elon and his team approves. This can (and will) leave some people grumbling (like what happened with the model S facelift).
Like it has been said earlier; you get what you paid for. Nothing less, (but actually more regarding the OTA updates)!
I do not have AP in my classic MS and 'only' AP 1.0 in my MX. But frankly, I don't care. When it is time to replace my car, I can get the then most advanced version :p.
 
Correct. When it comes to making changes to their product, Tesla pays no attention to the calendar year. Changes are not made on a fixed schedule. Elon has stated the cars change every week, primarily little things that customers don't notice.

The only meaning a "2017 Tesla" has is that the car was built sometime during 2017. That is all.

But do customers in the private market value a later model year?

In for sale section it seems even sellers sometimes only car about year when they state "2015 model s for sale" and no where add the month and sometimes not even the VIN.

It'll take some time to shake the stereotype of newer year cars being worth more than the marginal month difference between dec 16 and Jan 17.

Tax credit (when you get it) matters but if you are buying a $100,000 car I don't think the timing of $7500 will factor your decision.