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Tesla EV Tax Credits coming back?
- Thread starter hnguy054
- Start date
ZenRockGarden
Active Member
Maybe if inflation eases, Tesla can bump the base M3LR price down just a bit from 57 to 55... - huge net win for customers.
I'm curious if any Tesla vehicle will qualify for the full $7500. It looks like the $7500 is split into two $3500 allowances:
Allowances:
Allowances:
- $3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States (or countries with a free trade agreement with the United States.) Looks like for today, most of Tesla's critical minerals come from China? Tesla releases list of battery material suppliers, confirms long-term nickel deal with Vale
- $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States (or countries with a free trade agreement with the US.) I'm guessing the Tesla models that pass the pricing threshold qualify here.
Free trade agreement countries: Free Trade Agreements
Those parentheses should be removed given how important that will be for some of the manufacturers.
Rivian is getting borked if this new EV tax credit bill passes. They'll lose the current $7.5k credit and not be eligible for the new one due to where they source their batteries from. Think it's hard to just find a qualifying battery supplier in less than 4 months.
Interesting enough, the percentages increase year over year. I'm curious if the 2027 minerals requirement is going to be feasible for any OEM. I imagine it will take a couple years to stand up these new mining and refining factories but I guess we'll see.
- The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027.
- The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029.
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There is so much Tesla could do to bump the price down a few thousands. They could sell a M3LR- for $55,000. If you need to get all those things back, you pay after purchase $2000 unless you want to go with a M3LR- without heated seat, without basic AP, without sentry mode, go from 0-60 in 6 seconds...
Probably not a problem for Tesla.
For example: Tesla eyes $1b-plus of Australian minerals.
But where the nickel comes from is probably more important, since I think there is more nickel than lithium in most of the packs.
But even there Tesla has contracts to help qualify: Tesla Secures 5-year Lithium Supply Deal Starting Next Year With Australia's Liontown.
And if their LFP supply switches to local production, now that patents have expired, that could qualify as well.
Really, this goes hand-in-hand with what Tesla has been trying to do all along: To localize the supply chain as much as possible.
Here is the latest status:
www.voltequity.com
New EV Tax Credits for Tesla in the Inflation Reduction Act
The new system of EV tax credits emphasizes manufacturing requirements rather than battery size. The current EV tax credit begins at $2,500 for a 4 kWh hybrid vehicle and scales up to a max of $7,500. The new proposed EV tax credit discards battery size requirements and instead favors North...
www.voltequity.com
Tam
Well-Known Member
It's been with 4680 batteries made in Texas, but things could change if Tesla wants to use cheaper LFP for all standard range models from the 3 to the Y.
ZenRockGarden
Active Member
Yep, resurrected indeed
Will apply for Tesla's purchased after December 31, 2022 though. So for future buyers, make sure you take delivery in 2023 in case your income and vehicle qualifies.
Yeah - assuming the bill survives the next month or two getting thru congress without further changes.
It will be interesting to see what this does to used Tesla prices - there's $4k in there for used EV's I think... That would seem to improve used Tesla affordability a bit (once the bill goes into force)
I picked my MY last month. The promise of this bill was a major reason for me to order the car last fall. I failed. Manchin is ************.
I have a CT reservation though... hope the bill will pass before some time in 2024. Also, we now know the price of the Cybertruck - $79,990.
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