Tesla gives $3,750 discount for Model 3/Y in the US this month

[singlestack]

I think they will be able to produce a limited number of vehicles that also hit the 40% mineral requirement, but definitely not a full year's domestic demand

Tesla recently registered a new "Model Y All Wheel Drive" for 2023 with the EPA speculated to be a 4680-based Standard Range model, that one might be specifically set up to capture both halves of the credit with whatever amount of domestic and free-trade minerals can be sourced. Maybe it'll be limited to employees though, or who knows what, I think the numbers will be limited either way because there's a finite amount of such minerals available in the world and that's what the IRA legislation is largely designed to change.

Wouldn't be surprised to see the Treasury put the Model Y under the "Other" IRA category with a $55k price limit and Tesla price the Model Y SR right at that number, but who knows. Many are assuming it'll be held to an $80k price limit, but I'd be a bit surprised.

Agree with most of this. The one thing that makes me think the IRS might give Model Y the credit up to 80k is that they can’t screw the Model Y without also screwing the Mustang Mach e. Those two vehicles have identical dimensions down to 10ths of an inch.

 

[golferguy]

With all the political stuff going on now with Elon, Twitter and the current government. I think and do believe they will try everything to screw and exclude Tesla from getting the full amount. Time will tell

Its Tesla that is hiding the number, not the government. GM has already announced the new Lyriq is only $3750 vs the full $7500 in 2023 due to the battery materials. The rules on the credit state rules about manufacture location, content, and especially the battery materials from the US or approved countries. Tesla won't reveal the number. But yet GM has. Obviously Tesla has December sales at risk where GM has little to risk. But it shows a manufacturer knows.

Further showing Tesla's BS on this is if you call them about delivery, the message says to consult YOUR tax advisor. They side step it entirely. How would anyone's accountant know? Other than your income limit.

It may be $3750 or the full $7500. And that will change if Tesla ups the price on the M3 or MY to balance the credit. When Tesla lost the original $7500 tax credit years ago, they dropped the price.

 

[golferguy]

The idea that the legislation would allow Tesla to increase prices should be ammunition for why it won't happen -- this is called the Inflation Reduction Act, it's not the Inflation Exacerbation Act. And the idea that the government would allow this using taxpayer money...

A MY LR is already up +$17k since the beginning of 2021, I think people are living in a fantasy world if they believe the Govt/IRS is facilitating further price increases to an $80k limit for a Model Y that has the same battery and shares most of its parts with a Model 3.


And all of this while the Used EV price limit is $25k? Come on

Yes it is the IRA. But given Tesla's antics over the years with pricing they can do whatever they please. The SUV tax credit limit is $80K IIRC. The base MY is now $66K, plus destination and order fee about $68K. Assuming it qualifies for the full $7500 credit, Tesla could raise prices say $5K on Jan 1, 2023. It still qualifies for the credit assuming no other options or few options.
Our free enterprise system will not prevent a price increase. Tesla may try to recoup the $3750 it is giving away now on December deliveries.

Based upon my other Tesla purchases, and what I have seen, a small increase (say $2k) won't surprise me a bit.

How's that FSD full release coming along that was promised by end of 2020? Oh wait, I mean 2021? Oh wait, its coming.....

 

[Steven_H]

The idea that the legislation would allow Tesla to increase prices should be ammunition for why it won't happen -- this is called the Inflation Reduction Act, it's not the Inflation Exacerbation Act. And the idea that the government would allow this using taxpayer money...

They already did this as of Aug 16 when it was signed. It immediately disqualified 70% of the EV models sold in the U.S. Those would've otherwise continued to qualify for the $7500 tax credit.

 

[Steven_H]

Seriously do not be shocked if they put battery size minimums, or weight minimums, or something that will save the $80k limit for vehicles and batteries much larger than the Model Y's and that will cost much more by default just because the sheer size of the most expensive component. It might not go that way, but I'd be surprised.

An $80k ceiling does nothing to limit the price of the Model Y or any other "small" SUVs. Move into something like the Rivian R1s or Model X, and $80k would actually limit those -- and those are what I'd expect to be classified as SUVs. A Model X LR (100D) was $79,990 from May 2020 to Jan 2021.

I think it's more likely that they'll provide a grace period for those EVs made outside the U.S.

 

[Cherokee180c]

The credit is available to anyone who takes delivery in December even if you ordered in Feb (and yes there are Feb orders still waiting). And yes Feb/Mar people are already paying ~7K less than today's prices and they are now getting the ~$4K credit. Jackpot!! And they deserve it for waiting this long while Tesla continues to bump back their orders in order to fulfill higher margin orders placed after June's price increase.

Amen. My buddy who ordered his exact same car with the only difference being the black interior 2.5 months after my order got his 3 weeks ago. They have been screwing the early March orders for months now.

 

[Mike7564]

Surprised Tesla doesn’t instead offer Dec deliveries options like free full self driving upgrade etc. these things cost them nothing to activate.

 

[bro1999]

An $80k ceiling does nothing to limit the price of the Model Y or any other "small" SUVs. Move into something like the Rivian R1s or Model X, and $80k would actually limit those -- and those are what I'd expect to be classified as SUVs. A Model X LR (100D) was $79,990 from May 2020 to Jan 2021.

Volvo markets its upcoming EX90 as "well equipped under $80k". I'm almost certain the "under $80k" price point is 100% to do with the new EV tax credit. I expect the cheapest EX90 to start at $79,995 or something close to that.

 

[Steven_H]

Volvo markets its upcoming EX90 as "well equipped under $80k". I'm almost certain the "under $80k" price point is 100% to do with the new EV tax credit. I expect the cheapest EX90 to start at $79,995 or something close to that.

The thing is, the cap is based on the MSRP as configured. Not starting price.

 

[Golffan]

Hi all, first time posting here…
current schedule date for delivery of my Model Y is 12/10. I am yet to see $3750 discount reflected in my final settlement amount in the app.
does anyone have an idea how early before delivery date this will show on my app? I hope to have sufficient time to get banker’s check.

thanks

 

[voip-ninja]

Hi all, first time posting here…
current schedule date for delivery of my Model Y is 12/10. I am yet to see $3750 discount reflected in my final settlement amount in the app.
does anyone have an idea how early before delivery date this will show on my app? I hope to have sufficient time to get banker’s check.

thanks

It will post 1-2 business days before your delivery.

Your SA who texted you with your VIN can confirm you are getting it and can get you an updated pay off number if you are bringing a check to pay for the car

 

[bro1999]

The thing is, the cap is based on the MSRP as configured. Not starting price.

So you'd need to buy a base EX90 to receive any of the credit. Guess we'll find out soon enough what "well equipped" actually means.

 

[Happy Hippo]

So you'd need to buy a base EX90 to receive any of the credit. Guess we'll find out soon enough what "well equipped" actually means.

There’s no charging infrastructure for Volvo like Tesla has. Who knows when Tesla opens up the network will non Tesla be charged more for peak and non peak hours?

 

[Edkwok]

Hi all, first time posting here…
current schedule date for delivery of my Model Y is 12/10. I am yet to see $3750 discount reflected in my final settlement amount in the app.
does anyone have an idea how early before delivery date this will show on my app? I hope to have sufficient time to get banker’s check.

thanks

My SA told me the credit would show up after a delivery date is schedule.

 

[Malmon45]

Hi all, first time posting here…
current schedule date for delivery of my Model Y is 12/10. I am yet to see $3750 discount reflected in my final settlement amount in the app.
does anyone have an idea how early before delivery date this will show on my app? I hope to have sufficient time to get banker’s check.

thanks

Did they specifically ask for a banker's check? My EDD is 12/8-12/17, and was planning to just write them a personal check during pick up. I have been buying cars this way for decades so hopefully it's still the same process.

 

[Frikz]

Did they specifically ask for a banker's check? My EDD is 12/8-12/17, and was planning to just write them a personal check during pick up. I have been buying cars this way for decades so hopefully it's still the same process.

they dont accept personal check, you need to get a cashier check

 

[Mike7564]

There’s no charging infrastructure for Volvo like Tesla has. Who knows when Tesla opens up the network will non Tesla be charged more for peak and non peak hours?

Even if they charged more for electricity for non-Tesla owners, realistically we’ve paid at least 10-15k more than the car would objectively be worth without the supercharger network (based on basic entry level finishes, no LIDAR/USS, etc).

When you do the math, even if it was 20-40% more expensive, unless you’re driving an insane number of miles every year and charging entirely from the supercharger network, it’s highly unlikely you’ll make back the 10-15k in “savings”. Essentially with more crowded open charging stations, your Tesla has just been depreciated.

 

[Malmon45]

they dont accept personal check, you need to get a cashier check

Thanks for the info.

 

[CrazyRabbit]

So 3.7K now or 7K in 1.5 years.

Tempting.

 

[Edkwok]

So 3.7K now or 7K in 1.5 years.

Tempting.

it is $3750 plus tax right now.