Tracking P85D delivery thread

[wk057]

Well, I'm just hoping for a December 2014 delivery for tax reasons... so if I get it December 31st, I'm still happy. Sooner is better, of course, but I want them it to be right.

 

[AlMc]

Just talked with my DS by phone about something unrelated and asked him if delivery dates were still the same as we had planned. He stated "there's definitely been some delays. We might be looking at a few weeks past our initial delivery dates". Gave no indication for reasons.

I too would prefer to get it right instead of pushing out cars with some issues. The big motor companies and financial sector could otherwise put the hurt on Tesla.

I agree that I want them to get them right. However, I wanted to take advantage of the tax credit this year and my VIN makes my car a 2014 model. I asked specifically if they could get it delivered by 12/31/14 before ordering and assured it could be. IF, I had known that it would be delivered in Jan 2015 or beyond I would have waited, and like Lolachampcar, gotten a '2015'.
Mine is a first world issue and it will not cause me to lose any sleep, just would have been nice to know.

The car still may be delivered before 12/31/14, but it is looking more like it will not.

 

[gpetti]

My information now is a 1 week delay; however, I guess that could be a rolling week. I imagine some DSs are reluctant to say 1 week in case it does keep creeping.

 

[basf_audio]

Was just now told from my DS that "P85D’s are delayed but it is not necessarily a quality issue. The delay stems from a late shipment of next-gen seats." Seems odd from the perspective that some have posted here that they were supposed to take delivery today of their P85D - which would mean that their car was finished, trucked, and on schedule to be handed over. That doesn't seem like a seat issue. Just curious... I have a late December delivery and I was informed that it shouldn't impact my own delivery.

 

[lsnetman]

I agree that I want them to get them right. However, I wanted to take advantage of the tax credit this year and my VIN makes my car a 2014 model. I asked specifically if they could get it delivered by 12/31/14 before ordering and assured it could be. IF, I had known that it would be delivered in Jan 2015 or beyond I would have waited, and like Lolachampcar, gotten a '2015'.
Mine is a first world issue and it will not cause me to lose any sleep, just would have been nice to know.

The car still may be delivered before 12/31/14, but it is looking more like it will not.

if you complete the paperwork and pay for the car, financed or not, by December 31, but don't take delivery until January, can you claim the credit in 2014? Will Tesla allow it? Just wondering.

 

[basf_audio]

I was told that even if my car wasn't actually in my hands on the 31st - I could still take "remote delivery" of the car "direct from the factory". The quotes are to emphasis nebulous inference.

 

[EarlyAdopter]

Yeah, well bummer but such is life being an early adopter. We're all blazing the trail and will contribute to Tesla getting all of the issues ironed out. It's just the price of early admission. Gonna be worth it.

 

[breser]

if you complete the paperwork and pay for the car, financed or not, by December 31, but don't take delivery until January, can you claim the credit in 2014? Will Tesla allow it? Just wondering.

Doesn't matter what Tesla allows, it's what the tax code says and what the IRS allows.

Given the way the tax code is written, I don't think payment matters, but rather when you start using the car.

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.

Emphasis mine.

The IRS interpretation leaves a little more wiggle room here though.

.07 Acquired. A vehicle is not “acquired” before the date on which title to that vehicle passes under state law.

But I tend to view that as a backstop against creative interpretations of "placed in service" allowing credits for vehicles you don't actually own and not as an invitation to take the credit earlier based on titling the car before delivery.

Personally, I wouldn't risk trying to take the credit early. I'm not a tax lawyer or an accountant, so take my advice with a grain of sand.

 

[AlMc]

if you complete the paperwork and pay for the car, financed or not, by December 31, but don't take delivery until January, can you claim the credit in 2014? Will Tesla allow it? Just wondering.

I was told that even if my car wasn't actually in my hands on the 31st - I could still take "remote delivery" of the car "direct from the factory". The quotes are to emphasis nebulous inference.

Interesting concept. I will check with my DS and accountant. I don't mind doing this. I am financing less than 50% of the total value as Energy Federal Credit Union is just about giving away money at 0.61%. Not sure if they would be onboard paying for a not delivered car.

Any accountants have the answer?


****Thanks Breser, we cross posted******

 

[EarlyAdopter]

Was just now told from my DS that "P85D’s are delayed but it is not necessarily a quality issue. The delay stems from a late shipment of next-gen seats." Seems odd from the perspective that some have posted here that they were supposed to take delivery today of their P85D - which would mean that their car was finished, trucked, and on schedule to be handed over. That doesn't seem like a seat issue. Just curious... I have a late December delivery and I was informed that it shouldn't impact my own delivery.

The seats are one of the last things to go in, and it would be easy to skip that step, finish everything else up, then go back and drop the seats in later once the issues there were resolved.

If we take the combination of the two rumors we have from DS's - "Elon isn't happy with the quality of something with the P85Ds" and "there's some delay due to the seats" - then perhaps the problem is there's some quality issue with the seats Elon is unhappy about, and our cars are fully built and awaiting that seat issue to be resolved.

The cars that were done and ready to ship might have thus also been pulled back to redo something with the seats.

The fix could be something Tesla is waiting on shipment of a revised part from the seat vendor.

 

[commasign]

Yeah, well bummer but such is life being an early adopter. We're all blazing the trail and will contribute to Tesla getting all of the issues ironed out. It's just the price of early admission. Gonna be worth it.

Agreed. This is way better than all of us taking delivery too soon and then filling the forums with dozens of P85D problem threads!

 

[wk057]

You must have your car on or before the 31st in order to claim the credit on 2014 taxes. Payment and such doesn't matter.

My accountant's words were "You must officially own it by the 31st to qualify for 2014." His clarification being that I must "drive it off of the lot" by the 31st to qualify.

 

[bonaire]

I was told that even if my car wasn't actually in my hands on the 31st - I could still take "remote delivery" of the car "direct from the factory". The quotes are to emphasis nebulous inference.

This is for revenue recognition for the quarter-end. Some people have loans starting and payments made even before taking delivery. They can recognize that as a sale for the month-end.

 

[AlMc]

This is for revenue recognition for the quarter-end. Some people have loans starting and payments made even before taking delivery. They can recognize that as a sale for the month-end.

Just to clarify: If a lender is willing to make the payment to TM before delivery and one starts making payments on the loan then the IRS will allow the tax credit?

 

[jpet]

The seats are one of the last things to go in, and it would be easy to skip that step, finish everything else up, then go back and drop the seats in later once the issues there were resolved.

If we take the combination of the two rumors we have from DS's - "Elon isn't happy with the quality of something with the P85Ds" and "there's some delay due to the seats" - then perhaps the problem is there's some quality issue with the seats Elon is unhappy about, and our cars are fully built and awaiting that seat issue to be resolved.

If this is the case, I believe it would be better if Tesla would just communicate this as the reason behind the delay. If it is just seats and just one week, we don't need to worry...
But, if parts were not available when they launched production of the P85D, it is strange they did not postpone building the first batch in the first place.
It is to our best interest to give them the time to iron out possible issues so let's keep our fingers crossed.

 

[bonaire]

IRS question? Probably best to talk to an IRS agent (I think there are offices scattered around).

Now, the IRS code for Energy Efficient vehicles was basically setup to help get cars built and sold - an industry starting public benefit. I think it is a soft rule that says the "aquisition" date is the date for the tax credit. If you pay for it even if it is on the truck, I bet the IRS will let that slide. But I'm not a qualified accountant and really the answer is in the IRS's auditor's hands. If you "own" the car and cannot touch it - you still own it. I wouldn't do it - what if they hurt the car before you see it or somehow the truck has an accident, etc. I would pay for the car when it was in view and can be inspected. Tesla does have a history of trying to lock down finances days before delivery and I have read stories here on this forum (not this thread) about someone taking delivery in the first days of the next quarter after doing paperwork in the prior quarter. That was back during the turn of Q1-Q2 of this year. Revenue recognition is detailed in the company financial documents as "if payment is assured".

 

[breser]

Just to clarify: If a lender is willing to make the payment to TM before delivery and one starts making payments on the loan then the IRS will allow the tax credit?

I highly doubt this.

- - - Updated - - -

But I'm not a qualified accountant and really the answer is in the IRS's auditor's hands.

Yup, there are lots of things you can get away with if you don't get audited. It's not like the IRS knows when you picked up the car. So this whole thing would only be an issue if you got audited. In my opinion it's not worth the risk. Even if you figure the cost of money is 5%, $7500 for a year is $375.

 

[jstepy]

Just spoke with my Costa Mesa Delivery Team and while my car went into production on 11/25/14 according to their computer it's currently still in paint?

Isn't that the first thing of production? Am I getting some extra coats... some extra flake :wink:?

He estimated it would be done and ready for transport this weekend and actually made a tentative appointment for me to pick up on the 12th. I'd be very happy with that.

We shall see.

 

[3s-a-charm]

I'm okay with a delay if it is because Elon is checking the quality on my car. One request, though... can I get Elon to sign my dash, please?

 

[bonaire]

Or maybe a test drive video of each car with a title of "Launched by Elon".