Tax credit 2023 [The tax credit discussion thread]

[AndrewZ]

Tesla might come up with cheap version of MY to qualify pricing requirements(<$55k) with upgrades via app.

This could be a risky move and very well might be considered by the Treasury, Question 10(c) from the IRS doc might be alluding to stuff like this

Link to request for comments:

https://www.irs.gov/pub/irs-drop/n-22-46.pdf

Question 10(c):

I'm not entirely sure what other things may need to be considered in calculating MSRP, seems pretty straightforward otherwise

 

[acpd]

This could be a risky move and very well might be considered by the Treasury, Question 10(c) from the IRS doc might be alluding to stuff like this

Link to request for comments:

https://www.irs.gov/pub/irs-drop/n-22-46.pdf

Question 10(c):
View attachment 866189
I'm not entirely sure what other things may need to be considered in calculating MSRP, seems pretty straightforward otherwise

Tesla could sell that as subscription service etc.. which would not be part of MSRP.

This is going to be roller-coaster for the next few months.

 

[ElectricIAC]

Tesla could sell that as subscription service etc.. which would not be part of MSRP.

This is going to be roller-coaster for the next few months.

Could sell the base car for $53790 (plus $1,200 destination) with a 3mo sub to EAP and have EAP be a $119/mo sub or $7,000 option post.

No more basic AP included.

 

[AndrewZ]

Could sell the base car for $53790 (plus $1,200 destination) with a 3mo sub to EAP and have EAP be a $119/mo sub or $7,000 option post.

No more basic AP included.

I could see that flying with something like AP, although there would still probably be risk in trying to charge $54k for a vehicle without cruise control (assuming that would depart with basic AP)

But if we're talking locking out range, horsepower, or physical attributes and then offering to unlock later to dodge MSRP restrictions, I think the taxman would bring down the hammer on that and I bet they're receiving feedback in that regard. But maybe I'm wrong.

 

[ElectricIAC]

I could see that flying with something like AP, although there would still probably be risk in trying to charge $54k for a vehicle without cruise control (assuming that would depart with basic AP)

But if we're talking locking out range, horsepower, or physical attributes and then offering to unlock later to dodge MSRP restrictions, I think the taxman would bring down the hammer on that and I bet they're receiving feedback in that regard. But maybe I'm wrong.

Just include dumb cruise and Lane departure plus pre collision as a safety feature.

 

[vickh]

Tesla might come up with cheap version of MY to qualify pricing requirements(<$55k) with upgrades via app.

+1 I hope they do and I'll put in the order day 1 like i did for the SR 3. I wish they'd even let you add 3rd row later but I understand HW upgrades are tougher.

Didn't they have a SR Y for a bit?

 

[cya2marra]

My understanding is the tax credit applies to when the vehicle is ordered. I would imagine since the Order Date in the Order Agreement is in 2022, it will not apply if the tax credit goes in affect in 2023. You would need to actually order the vehicle in 2023.

 

[rickybobbee]

tesla is selling every car they can make. they aren't going to manipulate any pricing or features to fit a tax credit until they need to sell more cars.........no time soon. A tax credit isn't going to stop anyone from buying a tesla and that's all tesla TSLA cares about folks

 

[AndrewZ]

tesla is selling every car they can make. they aren't going to manipulate any pricing or features to fit a tax credit until they need to sell more cars.........no time soon. A tax credit isn't going to stop anyone from buying a tesla and that's all tesla TSLA cares about folks

There are 1,665 vehicles currently listed in Tesla's New/Used inventory, and there are still more rate hikes coming + rates will likely stay higher for longer

Inflation hasn't been conquered until demand is more balanced with supply and prices come down, financial conditions will continue tightening until that's achieved

 

[randmness]

Yea, if the used car market collapses, many of these relatively new Teslas that folks sold/traded-in could be on deep discount. Its amazing how many used 2022 Teslas, with less than 500 miles, are available.

 

[vickh]

Yea, if the used car market collapses, many of these relatively new Teslas that folks sold/traded-in could be on deep discount. Its amazing how many used 2022 Teslas, with less than 500 miles, are available.

link?

 

[vickh]

another factor similar to Sec 179 Heavy SUV credit.

Here's why a new $40,000 electric vehicle tax credit for business owners may be relatively easy to get

A tax credit for entrepreneurs who buy new electric vehicles or machinery doesn't carry many of the same restrictions that apply to consumers buying clean cars.

www.cnbc.com

 

[randmness]

link?

138 Model 3/Y with less than 1K miles near me

We have a LR Y reservation for $58K coming in December, but now I'm curious if folks will soon (by EOY) be able to snag low-mile used Teslas for considerably cheaper than new. The lowest I've seen so far for a newly traded (sub 1K mile)/used 2022 LR Y is $63K, but they are dropping thousands every week.

This past summer, used car values were up 45% over last year alone, so there is plenty of room for things to drop.

 

[acpd]

tesla is selling every car they can make. they aren't going to manipulate any pricing or features to fit a tax credit until they need to sell more cars.........no time soon. A tax credit isn't going to stop anyone from buying a tesla and that's all tesla TSLA cares about folks

EDD has been same for MYLR since August 31st ( Almost 2 Months). Meaning they are building more cars than orders. Tesla is basically catching up on orders placed on 2021 and early 2022. These won't sell without Tax Credit in 2023. Even Musk said, they will do whatever it takes to get EV credit.

 

[pepperoni]

tesla is selling every car they can make. they aren't going to manipulate any pricing or features to fit a tax credit until they need to sell more cars.........no time soon. A tax credit isn't going to stop anyone from buying a tesla and that's all tesla TSLA cares about folks

So the government offers a free discount on EVs and Tesla isn’t going to take advantage of that gravy train? I don’t think so.

 

[ElectricIAC]

So the government offers a free discount on EVs and Tesla isn’t going to take advantage of that gravy train? I don’t think so.

Free? We’re all paying for it, bro.

 

[Dale J]

Tesla only has to keep pace with their competition on this matter. If other similar EV’s from other OEM’s are produced that qualify for the credit, so will they. That doesn’t seem likely to happen as nobody is making anything comparable, nobody is putting out any worth while volume, and if they are, they aren‘t likely to qualify for the credit.

 

[rickybobbee]

Tesla only has to keep pace with their competition on this matter. If other similar EV’s from other OEM’s are produced that qualify for the credit, so will they. That doesn’t seem likely to happen as nobody is making anything comparable, nobody is putting out any worth while volume, and if they are, they aren‘t likely to qualify for the credit.

that is spot on. tesla has been raising prices for the last 2 years because the market is hot and nobody else can make a decent EV in volume yet at a decent price. This could change very quickly but until it does don't plan on tesla making any effort to conform to a tax credit

 

[AndrewZ]

There’s the first *real* price cut starting in the China market, almost 9% taken off the Model Y

 

[kithytom]

Please do not hold your order for tax incentive purpose

Inflation Reduction Act used EV funding mostly applies to PHEVs

The Inflation Reduction Act has dedicated funds for used electric vehicles, but the vast majority of models that apply are PHEVs instead.

www.teslarati.com