Tesla Model 3 Mid Range Deliveries Pushed Up To Get Full Tax Credit

Tesla Model 3 Performance

NOV 1 2018 BY VANJA KLJAIC 18

Tesla is urging customers to buy the Model 3 right now to get the full $7,500 federal tax credit.

The end of the year is coming fast and Tesla is well aware that this means a reduction of the federal tax credit is coming. Hence, the carmaker is urging their would-be customers to purchase the new mid-range Model 3 sedan right away, if eligible for the full $7,500 federal tax credit.

Released earlier this month, the Model 3 with a mid-range battery pack starts at $46,000 and comes with 260 miles of range.

The information about Tesla pushing for more Model 3 sales came through an e-mail sent to some reservation holders earlier this week. While sales tactics like these aren’t usually the go-to way of pushing sales with most legacy carmakers, with Tesla, it makes sense as the carmaker is up against some rather never before seen odds in the car industry.

Hi —-,

We recently introduced a more affordable Model 3 Mid Range Battery option for $34,200 after federal tax credit and gas savings.* As a reminder, the full Federal Tax Credit of $7,500 ends after December 31, 2018.

Current delivery timelines are 4 weeks for the west coast, 6 weeks for central and 8 weeks for the east coast. For delivery under 4 weeks, you can pick up your car directly from our Fremont factory.

Order your Model 3 at https://tesla.com/3.

*Taxes and fees not included. Price includes savings of a $7,500 Federal Tax Credit and estimated gas savings of $4,300 over 6 years. Depending on where you live, you can save even more with local incentives.

Tesla | All Rights Reserved | 3500 Deer Creek Rd. Palo Alto CA 94304 Privacy Policy | Unsubscribe

Here are the delivery timelines for the new version of the Model 3 from the e-mail:

  • under 4 weeks for direct pick up
  • 4 weeks west coast
  • 6 weeks central
  • 8 weeks east coast

If you are a reservation holder and you do have the available funds, opting in to purchase a Model 3 right away seems like a prudent decision. Otherwise, it’ll cost you more since the tax credit drops by half next year.

Source: Electrek

Categories: Tesla

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18 Comments on "Tesla Model 3 Mid Range Deliveries Pushed Up To Get Full Tax Credit"

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Droidment

If the Democrats win the house, there is a more than good chance that they will extend the federal tax credit to a few more years, if the car is made in America. Else, only foreign made cars will benefit from the credit, leaving American car manufacturers in a distinct disadvantage.

BoltEV (was SparkEV)

You people with reservations should order TODAY because it’ll be cheaper than $35K (Haha!!!) Tesla 3 and you get a better car. To sweeten the deal, use referral code and you get free charging at superchargers, something that may not exist when $35K (jajaja) comes out.

Benz

Tesla wants more reservations to be converted into orders.

That means that the number of Tesla Model 3 (Long Range AWD+ Mid Range RWD) cars they can produce and deliver in Q4 2018 is higher than the number of orders for Tesla Model 3 (Long Range AWD+ Mid Range RWD) cars they currently already have received from US and Canada customers, that have to be executed in Q4 2018.

Therefore Tesla wants to get more orders for Tesla Model 3 (Long Range AWD+ Mid Range RWD) cars from US customers for delivery in 2018 because of the federal tax incentive cut after 31 December 2018.

That means that the demand for the Tesla Model 3 (Long Range AWD+ Mid Range RWD) cars is not really that “enormous” in the US, at least not in 2018. And perhaps many more customers want to buy the Standard Range RWD Tesla Model 3 in 2019.

Is that right?

ffbj

Probably not.

Pushmi-Pullyu

“Is that right?”

I don’t think we have sufficient evidence to say one way or the other. How many would-be buyers (reservation holders or otherwise) are waiting for a lease option? How many are waiting for the PUP (Premium Upgrade Package) to become non-mandatory?

Perhaps Tesla has a good guess, but I don’t… and you likely don’t either.

Mint

There is a theory that Tesla wants to sell mid-range because battery production hasn’t increased as fast as desired, and they can sell more mid-range with the same amount of batteries than long range.

Any theory about dropping demand doesn’t make sense when Tesla told everyone that the deadline for guaranteed delivery by Dec 31 was a couple weeks ago, thus discouraging orders.

US demand will definitely drop like a rock in early 2019, though, because anyone who would naturally buy then would buy in 2018 instead. It’s really all about Europe from Jan 1 onwards.

Counterpoint

Most likely Benz is correct. Typically, less expensive options sell much better than higher-priced verions. So Tesla is trying to sell as many of the higher-priced Model 3s as possible so they can stay profitable when they start making the lower-profit $35k version.

Nix

Or they are advertising a relatively new product because it is new and not everyone knows about it. And the way they advertise is to release stuff like this to social media

Doggydogworld

You are basically correct, Benz. LR+RWD orders from the reservation list ran dry in late June so they:
1) Opened up orders to everyone and
2) Introduced AWD and P

The latter also helped margins, which they needed to show a Q3 profit. They started running low on orders after the late September delivery-a-palooza, so they tried the “order by October 15” gambit to see if they could book up the rest of Q4. They couldn’t, so they introduced the MR to convince more SR holdouts to upgrade before the tax credit stepdown.

I suspect they’ll need to pull another demand lever by late November.

Some Guy

You all do know how tax credits work. Right? The Fed does not actually send you a check for $7500.

Ken

I am waiting to see how much my taxes went down. I pay even less now I am retired so a tax credit is of little use to me. Maybe they will throw in free supercharging as a Christmas gift after Thanksgiving.

Andy_T

… neither does your gas station transfer the “$ 4,300 estimated savings on gas costs for 6 years” to your bank account….

Mark.ca

BS!
They do! Or transfer the money into your account. All you have to do is pay more than 7500 throughout the year. They sent me some $ last time.

Pushmi-Pullyu

Did the IRS send you a check for $7500? Almost certainly not. So the comment you’re calling “B.S.” is absolutely correct.

The $7500 is not a rebate. It’s just a credit which reduces the total amount you owe in taxes. This is a decidedly non-trivial difference.

Keijo

What the f**k? It was Oct 15 th last time, now you can still get the full tax rebate. This is bs again, pulling all the pumps on”unlimited” demand…

Dante

People on the east coast are 8 weeks from delivery. It’s right there in the article.

Tom

Unlimited demand for which equipment? They are pulling the strings to get more orders for more expensive models and they are going to milk that as much as possible before going down stream with lower option cars.

Nix

Mid october was the cutoff for LR because they are batch building a bunch of MRs. Two different trims and two different timelines