UPDATE: Tesla: Allocation For Full U.S. Federal Tax Credit Sold Out

OCT 15 2018 BY STEVEN LOVEDAY 113

Act quickly. You only have three days left!

***UPDATE: We’ve just received word that Tesla was overwhelmed by orders on this final day and, as such, has removed the October 15 deadline for the guarantee of the full tax credit notice from its website. This seems to indicate that Tesla has enough U.S. orders in now for the remainder of the year.

While we’ve known for some time that Tesla officially crossed the threshold of 200,000 vehicles delivered in the U.S., people have been wondering exactly when they must order their vehicle to assure that they are still eligible for the full $7,500 federal electric vehicle tax credit. Now, with only a handful of days to spare, Tesla has updated its website with the date.

According to the automaker, all orders placed by October 15, 2018 will be delivered by the end of the year, which guarantees that those buyers will be eligible to benefit from the EV tax credit in full. It doesn’t guarantee that buyers will have the individual tax liability to receive the full credit, nor does it guarantee that the government won’t make any changes between now and then, but it does guarantee eligibility under the current law. Cars delivered after December 31, 2018 will only qualify for a rebate of $3,750. Below is a look at how the phaseout works:

Federal Tax Credit For Vehicles Delivered
$7,500 On or before December 31, 2018
$3,750 January 1 to June 30, 2019
$1,875 July 1 to December 31, 2019

It’s also important to note that Tesla may be able to deliver more cars by the end of the year than it is anticipating. The automaker won’t have a firm grasp right away on the impact of new orders that come in over the course of the next few days. So, while Tesla is promising that all vehicles ordered by October 15 will be eligible for the full credit, there’s a chance that cars ordered after that time could also be eligible. This is a huge gamble, however, so it’s appreciated that the automaker is being forthcoming with the information, albeit last minute.

Source: Electrek

Categories: Tesla

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113 Comments on "UPDATE: Tesla: Allocation For Full U.S. Federal Tax Credit Sold Out"

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Roy_H

Of course they can’t guarantee this, it depends on how many orders come in the next few days as well as the production ramp up. I am a little disappointed that this announcement suggests that there will be no short range battery versions built before the end of the year. I had hoped that people who gave their deposit on the first day would be given a chance at full credit, after all Elon did say that they would be able to do this after reaching sustained 5k/wk production, which I think they have been for the last 2 weeks.

Vexar

He said 10k per week before the short range was released. I hear your disappointment, but do remember this: Tesla won’t sell cars without making a margin for very long and stay in business. Unlike GM, they don’t have billions of dollars streaming in selling 18mpg or less trucks and SUV in profits to bury $9k/unit losses on the BoltEV, and make up for it in ZEV credits. It’s disappointing, but it isn’t unreasonable. What’s disappointing is the production ramp. I mean, they are doing it, they are getting there, but they are being cautious. It’s not like the US Government is going to say “too big to fail” and bail them out like GM.

Windbourne

GM, and Ford are very likely going to need a bail-out. again.
Hopefully, this time we do it right and will break apart these companies as a condition of bail-out.
Far better to have 6-10 car companies in America, competing against each other.

ModernMarvelFan

There are already more than 10 car companies competing in the market. The problem is that when they get smaller, the larger foreign auto makers will eat them up.

MTN Ranger

GM is doubtful for bankruptcy again any time soon. They have record profits, light years from the 90’s and 00’s.

Vexar

You should look into the details:
https://www.nasdaq.com/symbol/gm/financials?query=balance-sheet
GM has (I don’t know how to read these things) more than a hundred billion in debt. They make around 135-145 billion a year. I do not doubt another bankruptcy.

MTN Ranger

You have to look at assets to liabilities as a ratio. The higher the ratio, the better financial condition (but this needs to be used with other financial factors and ratios to get a full picture of financial health).

GM
$68B in current assets and $144B in LT assets = $212.4B assets
$177.5B in liabilities
—————————–
120% assets to liabilities

Tesla
$6.7B current assets and $21.2B in LT assets = $27.9B assets
$22.6B in liabilities
—————————–
81% assets to liabilities

GM
$36.8B revenue
$3.7B gross profit
$2.4B net profit
————————
20.7% revenue to liabilities

Tesla
$4B revenue
$0.6B gross profit
$-0.7B net profit
———————-
14.3% revenue to liabilities

By using revenue to liabilities, GM is still in better condition.

antrik

Your Tesla “assets to liabilities” number seems flipped.

(Also, Q3 revenue for Tesla should be >$6 billion…)

theflew

You must have missed the lines for the increase in assets.

john1701a

GM’s profit is mostly from large guzzlers. That’s a formula for major financial challenges to come in world of high production-cost choices with a plug. Their opportunity to focus on affordability was, sadly, wasted on conquest. Attention should not have been on chasing Tesla customers. It should have been on their own demograph. Legacy customers will be very difficult to sell narrow-margin vehicles to.

stimpacker

…. and gas is getting close to $4/gallon. $3.64 today at my local station.
When that happened the last time, people abandoned their large SUVs/trucks.

Dan F.

Ford DID NOT receive a bailout, only GM and Chrysler. Small auto companies are economically non-viable unless they are making high priced premium cars.

Tech01x

Ford technically did not receive a bailout. But it did receive a $5.9 billion dollar ATVM loan from the DOE and a $15.9 billion dollar loan from the Fed. Basically they took almost $22 billion in their “not a bailout” assistance package.

Nix

Tech01x is correct. And on top of those two direct assistance programs, Ford also benefited from the “Cash for Clunkers” program which was designed as a bailout for the automotive industry.

TomArt

It’s still not a bankruptcy. GM and Chrysler went belly-up, hence the bailout through restructuring.

Dimitrij

I don’t think Ford was bailed out during the last recession, and also GM did become “smaller” after the bankruptcy.

Also consider this: if you make them much smaller and they won’t be able to compete against the super-size global monsters like Toyota, VW and increasingly Hyundai/Kia. Never mind the Chinese companies.

antrik

Uh, no, he definitely said 5,000 per week. He later amended that though by saying that after reaching the target rate, they need to further streamline the process to also achieve target costs…

Robert Weekley

Correct, and more recently, it was stated: ‘3-6 months after reaching a steady 5,000 per week’, to do as you mentioned: “to further streamline the process to also achieve target costs”, so that means, a ‘Glimmer’ of a Possability, by year end, with most likelihood, of coming out in Late Q1, 2019, in anything more than some first cars for Employees, before then, as they will quite likely be shipping Premium Variants, to Europe, even Before, the Base Model 3 Ships here!

Vexar

OK, I missed that, but 3-6 months after reaching a steady state of 5k per week may well be a run rate of 10k per week anyway.

antrik

Unlikely: 3 – 6 months after 5,000 per week should be some time in Q1; while 10,000 per week is generally not expected to happen before the middle of the year… (Though they only said “10,000 per week at some point in 2019” in the latest update on production targets…)

Vexar

I failed to dig it up in Twitter, but he said they needed to reach “10k per week or die” selling the $35k Model III. Not the best citation.

antrik

I think you are confusing several distinct statements. He did say that at 10,000 per week, they should reach the $28,000 production cost estimated by the German teardown. That’s unrelated to entry variant production.

Windbourne

so, what do you have on order?

Do Not Read Between The Lines

No short range version at least until 2019. Tesla needs cash fast so they’ll churn out the LR AWD and P LR AWD as much as possible.

Elon Musk actually wrote that they _wouldn’t_ be able to do it until after they reached 5k per week, not that they’d do it when they reach 5k per week.

TheCyberKnight

Tesla made it clear that the normal range version is 3 to 6 months away.
Which means 6 months.

BroncoBet

That usually means at least a year.

SeattleTom

Do the majority of buyers of a $35K car really have a tax liability of more than $7,500 in a typical year? I mean that’s a tax liability for a pretty significant income – it seems like a stretch to me.

Matthew Kennel

Easily for an income of 120,000. The car won’t be $35k it will be $35k + 1.5K +1.2k + 5k + 5k for most people (paint, destination, interior, autopilot).

antrik

I don’t think most people skimping on the larger battery will splurge on the interior… I’d expect the opposite configuration to be much more popular.

(Not sure about Autopilot.)

arne-nl

Where I live, the larger battery would be an utter waste of money, coming in handy maybe once or twice a year. The upgraded interior however I could enjoy every day.

Nathanael

Well, that may be true in Europe. Right now Tesla is selling in the US and nearly everyone will go for the larger battery first.

TomArt

Yes, particularly if they are single, it is VERY easy to rack up $7,500 in Federal Income Taxes, even after deducting mortgage interest (in my case, double). In fact, 27% of my gross income goes to Federal income taxes + state income taxes + Social Security + Medicare/Medicaid.

There is a major financial penalty for being single in this country. That’s one of the reasons why gays wanted to be able to be legally married – because they could not benefit from the huge monetary advantages to being married.

That’s also why the gov’t is very interested in having a legal definition to marriage: tax law and family law rely very heavily on a person’s marital status (from the 50% federal income tax break, to inheritance, etc.).

Cypress

Pulling another demand lever.

Tech01x

Well, they don’t have a choice on the tax credit sunset provisions.

TomArt

It is a customer service, not an incentive on Tesla’s part. It’s EXTREMELY helpful to the potential buyer/existing orders to know at what point they will be guaranteed to get the full tax credit. That news was a relief to many, and a panic to many others.

Will

I thought the full credit was until Jan. Are they trying to fool people to buy early to make a profit🤔

cab

No, they are saying that they can’t guarantee delivery this year if you order after that date. If you don’t take delivery this year, you aren’t eligible for the full rebate

Robert Weekley

It is unlimited cars (Within a Manufacturer’s ability) to be ‘Sold’, which assumes Delivered, and registered, for counting purposes!

As we know, and has been stated and evidenced by Tesla, they can now MAKE the cars faster, but are working like Mad, to deliver them!

antrik

The much reduced number of cars in transit at the end of Q3 suggests that they have already worked through delivery issues pretty well…

Will

Thanks guys

Light

But it also means the ones left to deliver take substantially more time. They did the easy ones first (makes sense), but doesn’t mean the delivery issues are worked out yet. 1.5 weeks until delivery to my parents. They were set for Sept 11th delivery… so they are very much working through delivery issues, they are just delivering much faster than they were. The owners helping with deliveries made a huge difference as they Tesla employees could doing just the part they legally have to.

Once delivery/delivery communication is smoothed out along with further production ramp it’s simply keep following the 10 year plan Elon is currently working in.

Doggydogworld

They delivered more than they made in Q3. It got a little crazy, though, and they still have delivery issues.

Windbourne

Hopefully, this credit is remove altogether, OR changed to be a limited time, but only for BEVs.

Pushmi-Pullyu

It is for a limited time. No change necessary.

And what purpose would be accomplished by not giving at least partial credit to the longer-ranged PHEVs such as the Volt and the Clarity PHEV? Limiting the tax credit to BEVs only would mean limiting the credit mostly to those families which have two or more cars, of which one is typically a full-on gasmobile.

I think we should encourage people who own only one car to make that a plug-in EV, and for many or most people, replacing the one-and-only gasmobile would require a PHEV, not a BEV.

antrik

I agree that PHEVs shouldn’t be excluded entirely — but the range (battery size) requirements for getting the full credit need to be raised significantly.

Nathanael

It’s going to get a bit weird, since around the end of 2019, GM and Tesla won’t get the credit, and everyone else will. At that point the credit might well be changed (“It only goes to people who buy cars from non-US manufacturers” is going to sound pretty weird in the US Congress)

Assaf

This is odd considering that as recently as September they had invited customers to what is essentially a walk-in delivery.
I wonder whether the huge September numbers generated an even huger spike in orders. Otherwise, it’s a strange move.

Joe Martin

The wait time depends on what options you select. Tesla is stating that even an oddball configuration delivered to the opposite side of the country will be deivered by 12/31. If you live in CA and want a black RWD Model 3 then you’ll have it in a few weeks.

Do Not Read Between The Lines

It’s both CYA and encouragement to get orders in sooner rather than later.

Basically, if you order after that date, and they don’t get you your car by the end of the year, don’t ask for the $2.5k deposit back.

As Joe noted, there are various things in the way of you wanting a specific configuration and receiving your car. If you’re not so fussy you can have a car faster.

stimpacker

@Assaf you took the odd event and regarded it as the norm.

That was a Q3 push for deliveries, being delivery bottle-necked, it was much easier getting local Bay Area folks to pop over and grab a car.

Just look at the 2 main TM3 forums – tons of people waiting anxiously to get their cars.

So this is only “strange” if you believe the narrative that TM3 sales have dried up. We all know who peddles that crap. I had to get my car from a Tesla Energy employee, from some unmarked building, not from the nearby Tesla site. Even then tons of people getting their TM3, S and X on that day.

j.b

Tesla had approximately 420k pre-orders. Shouldn’t the people that pre-ordered receive the car first?
is Tesla sorta ditching the early adopters? can someone explain? I’m confused.

QCO

Quite simple, really… they will keep going until they run out of people who will buy the 50-60k versions.

The interesting part is that it seems 300k of those reservations are for the $35k base model.

Nathanael

All evidence is that only about 140k of those reservations are for the $35k base model — only about 1/3 of customers wanted the base model. (That said, about half of all reservations are overseas, not US — so there were only about 140k *US* reservations for the big-battery model).

Tesla’s made a mess of their delivery system, but I guess they’re promising to straighten it out and get everyone who already has an order their car before the end of the year. Good. They should be able to do it if they straighten out their logistics; they’ve delivered about 100k so far (including some walk-ins); they’re producing about 20K/month now (and rising), so they should be able to deliver 50K by the end of the year and cover all the previous orders.

TJKR

I think the $7500 tax credit made alot of people buy the Long Range and I doubt there are that many people with reservations waiting for the Standard Range. I think once the Standard Range is out, it’ll generate alot more demand. At this time it’s Tesla’s best interest to hold back the Standard Range as long as possible and sell as little as possible.

Pushmi-Pullyu

“…I doubt there are that many people with reservations waiting for the Standard Range.”

That’s not a rational opinion. We have seen a great number of comments posted online from reservation holders, even first-day reservation holders, stating they are waiting for the Standard Range version. Sure, some of them have upgraded to a Long Range version in order to take advantage of the full tax credit. But a lot of them, perhaps most of them, have not.

antrik

Seeing “a great number of comments” doesn’t prove anything. A vocal minority of even just a few dozen people would be enough to produce a great many internet comments.

Pushmi-Pullyu

I agree that “The plural of anecdote is not data”, but the number of people waiting for the Standard Range Model 3 is obviously very high. It’s not reasonable to believe it’s just a few percent of reservation holders.

Nathanael

1/3 of the reservation holders, 140K people, will generate “a great number of comments”

Will

Now the split for SR cars should begin

Robert Weekley
Bad math is not helpful, on this topic! No one outside of Tesla has the Country by Country details for reservations, but we have “Estimated” that maybe “Half” of the Total 450,000 Peak, Net, Reservations, were from the USA, only! So, “All In” USA Reservations are “About” 225,000 cars, based on that ‘Assumption!’ But some of those may want Short Range Battery, PLUS Dual Motor! AND, Some may want Short Range Battery, Plus Premium Upgrade! Also, some may want Short Range Battery, Plus Dual Motor, PLUS Premium Upgrade! (All variants which may well come out, Before, a Zero Optioned, Strictly Base Range, No Premium Upgrade, Rear Whell Drive Only, Model 3, in Black, is “Available” to Order, for $35,000.00 (Plus Shipping, or “Destination” Fee!) Of course, such cars are not yet available, and while it seems they are being ignored, they are not, to the best if Tesla’s ability! Also remember: Elon never “Pitched” a $27,500 Model 3, ‘After Tax Credits’, like GM ‘Pitched’ a Chevy Bolt EV could be had for ‘$29,995, after Tax Credits!’ That figure was tossed out by the press, and lapped up by many! Elon DID, HOWEVER, Promise a Base Range, un Optioned Out, Model… Read more »
j.b

thanks for the info

antrik

Before complaining about bad maths, maybe you should work on your orthography 😛

(Seriously, the gratuitous capitalisation, quoting, and exclamation marks are *not* helpful. They are just annoying, and make comments harder to read.)

Vexar

And those people in the US (and at least some in Canada) were invited to configure. Many, however, are not in the USA. Large numbers in Asia, for instance. They have to hit the order button. It’s a demand lever, to be sure.

Brian

Half are over seas orders and the other half are short range models which won’t be made until next year.

QCO

Clearly aimed at addressing “delivery anxiety” for the P and AWD, which had 2-3 month delivery cycles. It could also be a bit contrived to juice the higher end model sales since the RWD still has a much shorter 4 week delivery.

Not sure if the maximum range RWD really is less popular or whether part of it might be due to that glaring configuration anomaly that blocks the white interior option.

But I can’t see why someone who is waiting for the low end $35k version doesn’t consider the current RWD now. Factoring in the full tax credit, it is only $6.5k more for the LR battery and premium interior. Unless you live in the sun belt and are waiting for a white interior…

Tom

I’m in the sunbelt, and an IR blocking window film does wonders for making the black interior just fine. (EG 3M Crystalline 70).

antrik

Last time I checked, AWD / P were listed at 8 weeks.

Good point about white interior…

F150 Brian

I just checked the Tesla US website.
It says delivery in 4 weeks and also lists $7500 in incentives.

This seems to suggest that the 2018 order books are not full yet

(⌐■_■) Trollnonymous

Or the web admin hasn’t updated it yet?

F150 Brian

So is the article wrong or Tesla is allowing people to order cars under false pretenses? Which one is it?

Pushmi-Pullyu

Neither. See the comment by Joe Martin above. He explains it rather clearly, I think.

marshall

The reference that the article is about is gone from the web site.

marshall

Delivery in four weeks is for the RWD only. If you want a the AWD or performance, it’s 8 weeks.

bro1999

And the dream of getting a “$35k Model 3” and cashing in on the $7,500 tax credit dies. All those poor suckers that stood in line for nothing.

ffbj

As dreams do when people wake up. It was never in the cards, and predicted long ago, but thanks for pointing it out once again.

Nathanael

Indeed, Tesla never promised that you could get the full tax credit on the base version, and pretty much warned people that you wouldn’t be able to, due to the way the tax credit expiration works. Everyone informed knew this. Tesla was always going to deliver the high-optioned models first (they always do, and they said they would), and when they delivered enough of them, the tax credit phaseout started. This always made it extremely unlikely that the full tax credit would survive until the base model car was delivered.

Another Euro point of view

To get in a line on a early morning because you believed in a price point announced by Elon Musk, you not only need to be a sucker but a world class category sucker.
Is there a medal fabrication dept. at Tesla as part of their vertical integration so those could be awarded to their prospective clients for the 2018 $35k Model 3 ?

Get Real

Says the guy who drives a “clean diesel”.

So who was suckered Another Euro BS?

Pushmi-Pullyu

There certainly is a B.S. fabrication department at whatever website you copy your FÜD from.

Fortunately, Tesla’s success is now guaranteed by the runaway popularity of the Model 3. And fortunately, there isn’t a durn thing you serial Tesla bashers can do to stop it!

You lost. Tesla won. Get over it.

Go Tesla! Keep Going Tesla!

Mister G

GO TESLA GO DESTROY DIRTY GAS GUZZLERS AND DIESELS CONNECT THE DOTS ON CLEAN AIR WAKE UP EARTHLINGS

Vexar

Unless the Senator from Wyoming kills the Federal incentive sooner. Then everybody’s dreams die. Except those making 6-figure incomes pumping oil out of the ground, out in the fields. Oh, they are happy, sure. But what’s the point? Who wants to be a wealthy coal miner? It’s not good for the environment and it is not good for the body to be a coal miner. I am sure similar exposure toxins exist as a concern for crude oil.

Robert Weekley

bro1999 says, Quote “And the dream of getting a “$35k Model 3” and cashing in on the $7,500 tax credit dies. All those poor suckers that stood in line for nothing.”!

Bro, who pitched that dream?

Elon never “Pitched” a $27,500 Model 3, ‘After Tax Credits’, like GM ‘Pitched’ a Chevy Bolt EV could be had for ‘$29,995, after Tax Credits!’

That figure was tossed out by the press, and lapped up by many! Elon DID, HOWEVER, Promise a Base Range, un Optioned Out, Model 3, at $35,000, would be a “Great Value!”

Also, since, how much you get in credits, is determined by your otherwise net liability, as it stands, Most who could not afford to order the current cars at their $49,000+ prices, also could not qualify for the full Tax Credit, based on many discussions shared in these matters!

F150 Brian

Tesla mentioned a $35K Model 3 years before it was available, and while Tesla may not have been explicit about the statements mentioned above, but they sure fed the machine that produced them *and* allowed people to believe it.
Vote me down all you want, Musk and Tesla have mislead people for years. That speaks to a lack of integrity.

Dave

$35k 3 will come. I expect few buy them, more will add options, so average cost will be mid-forties or higher. I do not see a problem –Tesla has to do what it takes to remain viable. Shorts argue Tesla is going to go bankwupt but also complain when Tesla is prudent on the 3 roll-out.

Will

Who’s the few? You mean the other 200k reservationists

Pushmi-Pullyu

“Musk and Tesla have mislead people for years.”

WOW! So now you think it’s Tesla’s job to go around and correct all the overstatements and misstatements made by the media?

What world do you live in, dude? It sure ain’t the real one!

Some Guy

And in 2013, after Tesla had first success with the Model S, VW promised to be techology leader by 2018 with multiple (dozens of) EV models over all brands available in high numbers. They have the e-Golf (introduced 2014), the e-UP (introduced 2013), and since WLTP, that’s it (Passat GTE and Golf GTE currently not available until next year). Sure, there will be some cars in 2020, but this is still two years out, and unlike the Model 3, thise are not available in higher trim as of right now. So compared to that, Tesla would still be faster than VW if they deliver a base Model 3 before Q4 2022, which I’m sure they will.

Some Guy

By the way, Ford showed off an all electric F150 almost 10 years ago at the SEMA 2008, a concept was presented that was called Hi-Pa Drive F-150. Will they start building that oe soon? Because if you just build something for a show to show off with no intention of ever producing it, I call that waste of money.

John

Still bitter over your Bolt, eh?

Dimitrij

I think you envy him, because he has a lovely Bolt, and you don’t 😛

John

Well… maybe a little! I’m seriously considering replacing my Volt with a used Bolt in about 2-3 years. It’s the perfect second car.

Brian

Dang I wasted two hours,…………reading your posts.

bro1999

If it took you 2 hours you read that comment, you got bigger problems than I could ever imagine.

Model3 Owned- Niro EV TBD -Past-500e and Spark EV,

EV dream of ANY long range vehicle for $35,000 hasn’t been realized. Tesla probably will still be first to market on that, let alone in volume that’s not pegged to CARB requirements.

Pushmi-Pullyu

MentalBro: You don’t need to keep reminding us about how angry you are that you wound up with a Bolt EV instead of a Model 3. We got it, several hundred of your posts ago.

And Tesla was careful never, ever to promise anyone the full $7500 tax credit. Unlike you, some people prefer to stick to actual facts and Truth.

Dimitrij

I am not an economist or a marketing specialist, but I already had a gut feeling in 2017 that the $35K TM3 would not be available until Tesla has gone through the >$44K customer list, which was likely going to happen after the $7,500 credit goes away. So, I got a Bolt, drove it almost daily for about 10K miles to see it wasn’t a disappointment, and canceled my reservation. I didn’t mind lending Mr. Musk $1K for a year for a good cause 🙂

Big Solar

Well, folks that can only afford the small battery model 3 are more likely to not be able to utilize the full 7500 tax break anyway…..

Robert Weekley

Big Solar tells it right, when he says, quote “Well, folks that can only afford the small battery model 3 are more likely to not be able to utilize the full 7500 tax break anyway…..”!

However, I would tweak that to say: ‘with Zero Options’, specifying the more particular one, at the targeted “$35,000.00”, as some ‘small battery’ variants may ADD: Dual Motor, OR Premium Upgrade, OR BOTH! PLUS Paint and/or Wheel Options!

William

As it has been shared here before, it has once again become painfully obvious, in just three short days, that the Tesla Model 3 bowl holders, will be reminded, once and for all, that there will be “No soup for You!”

Dave

The soup is available, just not garanteed to arrive before Christmas … ‘good things come to those that wait’.

Pushmi-Pullyu

There is plenty of soup, altho the waiting line is long for those who choose the smaller bowl. They may also find that the free garlic bread runs out before they get to the head of the line. But they can switch to the larger bowl at any time, and get served quicker.

Will

They don’t want that bowl

TJKR

With the official delivery estimate being 3-6 months away for the Standard Battery, I am willing to bet Tesla will open up design and order next month, probably after 3rd Q earnings. Of course this will probably be the $40K version with PUP. Maybe some lucky person will actually get one before end of the year to get the full credit.

antrik

I don’t think they will open orders until shortly before entering production; and probably only to early reservation holders at first.

Dimitrij

This tax credit may have been a good idea 8 years ago, but as of October 2018 it is no longer the best bang for the buck for the US taxpayer. Therefore, it needs to be scrapped and replaced with something that is a better value for money.

john1701a

Punishing automakers who carefully studied the market, rather than rush to it, doesn’t make sense. They will provide that better value for the money.

It’s unfortunate opportunity was wasted, but that’s no reason to pull the plug (pun intended) prior to others getting a chance… those who took the time to do it right.

Keep in mind how few vehicles 200,000 actually is. Our market alone sells over 17 million new vehicles every year.

Pushmi-Pullyu

So… you’re suggesting that those auto makers who sat on their hands, let other auto makers invest the money required to design and develop compelling, competitive EVs… those auto makers that want to swoop in later to take advantage of the trailblazers…. You’re suggesting those procrastinators should be rewarded equally along with those who actually took the risk and spent the money on early EV development?

Well, I suppose that’s just the sort of argument we should expect from someone hoping that Tesla will fail. 🙄

Dimitrij

Revoking an incentive from a reluctant participant is not a punishment; it’s the consequence of their lack of interest.

These multi-billion $$$ incentives were intended to help *create” the EV ecosystem in the US almost from scratch, not to engage in “studying the market”. The past 8 or so years showed that some companies took on the risk and the opportunity (Nissan, Tesla and GM), while others decided to stick to compliance EV’s

At the very least, I would withdraw federal incentives from compliance EV’s. As to what to do instead to continue to
stimulate the growth of the EV adoption … hmmm … maybe EV’s for clunkers? EV lottery? Assistance to first-time car buyers? Gov’t help in building out fast charging networks, perhaps on the dollar-for-dollar match basis for whomever installs a DCFC/Supercharger? Science grants and stipends to developers of new battery-, FC-, supercapacitor etc. tech?

(⌐■_■) Trollnonymous

OPEC Welfare needs to the plug pulled as well then.
Level the playing field, that’s what keeps the US addicted to gas/petrol.

If these id10t politicians want to really save some money start tapering off the gas/petrol subsidies.

“A 2016 study estimated that global fossil fuel subsidies were $5.3 trillion in 2015”
https://en.wikipedia.org/wiki/Energy_subsidies

John

Ironic how the biggest free-loader in the room gets a free pass. Especially considering they shine the brightest light on the word ‘subsidy’ whenever alternative energy/transportation is brought up in conversation.

antrik

Well, I agree that there are better options… Such as a carbon tax high enough to reflect real costs. Unless and until this happens (not any time soon, if ever), the EV tax credit is the second best option.

jim stack

If you buy a used model S 3 or X the price should already have the $7,500 taken out already. In FACT with the model X some may have taken the Hummer Tax Incentive, the EV FED Incentive and started taking the 25% depreciation so they may give you an X. LOL or it’s so affordable you have a Super Bargain.

Nathanael

Well, Tesla has their work cut out for them delivering all orders made by end-of-day on Oct. 15. They still have a delivery logistics mess and haven’t delivered all the *June* orders yet, due to delivering cars out of order.

If you order after October 15… don’t expect to get your car this year, though you might.