Tesla To Pay Tax Credit Difference If It Can’t Deliver Car By End of 2018

DEC 22 2018 BY ERIC LOVEDAY 58

Tesla has you covered, provided you did your part.

Provided you were promised delivery by year’s end and made a good faith effort to accept it, Tesla is willing to cover the additional expense tax credit expense.

That’s the latest word from Tesla CEO Elon Musk who says that Tesla is racing to deliver all cars, mainly the Model 3, as promised by the end of 2018. That’s before the federal tax credit phaseout kicks in starting in 2019.

This is all part of a big end-of-the-year push and end of the quarter effort. But what Tesla is doing here is actually quite astonishing. Basically, Musk is saying that if it’s Tesla’s fault your car doesn’t arrive on time, don’t worry. Tesla has got your back. The typical credit difference will be $3,750, provided you qualify for the full amount, which is $7,500 right now, but it drops by half in 2019.

Musk added a comment on Model 3 Mid Range too:


It seems as though Tesla will be delivering cars in load after load right up until December 31.

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58 Comments on "Tesla To Pay Tax Credit Difference If It Can’t Deliver Car By End of 2018"

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I’m going to be really interested to see how many cars they deliver in December!

10,000,0000,00000.00 cars

LOL

Is that more or less than a zillion? 😉

A “Sagan” of cars…

Down vote on this clever comment? Carl left us too soon. He should’ve been with us billions and billions…

Glad to see the delivery commitment backed up with a financial assist if they fail. I think the mid range option will be dropped as soon as the short range is available and the long range RWD will be re-instated. Just my opinion with no facts, but it just makes sense to me.

Tesla once again demonstrates that it goes above and beyond for its customers and its mission of spurring sustainability of transportation unlike the laggard, legacy LICE companies.

Can’t wait for the laggards’ shills and the shorters and haters to gnash their teeth and once again try and spin this negatively as they contort their feeble minds trying to counter Tesla’s success and customer satisfaction numbers!

Except that they never delivered the base Model 3 with full tax credit, like they said they would previously on numerous occasions. So they never came out with a Bolt EV competitor at the same price point.

With the recent disappointment in the lack of a battery heater in the Kona, and no base Model 3 with full tax credit, I’m currently browsing used Tesla Model S inventory. 🙂

You do realize S is a land yacht. It’s longer than my minivan. One thing I liked about SparkEV is short and easy parking, and Bolt still feels like a boat (3 is longer than Bolt and S even longer).

I love my Spark EV because it is so tiny and nimble. I rented a Model 3 LR for a couple days a few months ago and thought it was great, but so huge. Really more car than I want. Test drove a 3 performance last month and am having one delivered later this week. Still huge, but all that power and the crisper handling are quite compelling. And really not that much bigger than the 94 Accord I drove for 20 years.

Well Eric, I’m not sure that they ever “promised” a base Model 3 with the full tax credits.

I know for a fact that they are working like hell to make a base Model 3 at $35,000 possible and as you can imagine this is not an easy task to make such an outstanding, feature-rich car like the Model 3 for only $35,000.

Getting this car was my original plan but with the full credit almost gone I pulled the trigger on a LR, single motor and I don’t regret it at all. Easily the best car I have ever driven, much less owned. Having 340 mile range and the ability to put 200 miles back into the battery in 1/2 hour makes it eminently long-distance capable and like driving in the future.

Get a Tesla and you too will never look back. Take it a step further and install solar on your house if you can and you will become largely energy independent as you drive on sunshine. If you are handy you can even buy the equipment and DIY for 1/3 the price of having a company do it.

I agree with most of what you are saying, however, going solar to charge a Tesla can be a dangerous path. I was going to do the same thing, but most average solar installations will produce roughly 3-7 Kwh when the sun is shining. A Tesla will charge much fast than that. I believe they charge close to 10-20KwH. The problem is if you live in a banana republic like California, the electric companies have rigged the rate plans so that you are credited 1-2 cents a Kwh, and charged up to 47 cents a Kwh when you pull from the grid. At least with Edison you are charged when you pull from the grid, and then credited when you add power to the grid. As you can see Edison rigged it so that you can easily pay more for electricity when you switch to solar. I realize this is still probably cheaper than paying for gas, but it can end up costing more than most people plan on.

You can restrict the charging rate to whatever you want from the charger or from the car software. If cost is important them thake the ev plan and charge at 12 cents all night.

Who, among us dEVout St. Elon worshippers, had EVer expected “the base Model 3, with full tax credit”, to become available before the 200k Tesla sales threshold was EVentually crossed?

The “same price point”, on two completely different manufacturers EVs, will most probably never merge, as irrational market supply and demand conditions, will dictate what the savvy retail EV consumer will tolerate, from said manufacturers, and their vastly different technological EV offerings.

Tesla said the 35k Model 3 would be available in November, 2017. Before AWD. Before Performance. Before international. And certainly before the 7500 tax credit phased down.

They said all this on their web site from July 31 until October, 2017. Whether people should believe anything Tesla says is a different issue.

I think Tesla’s production woes have been trolled on enough at this point.

It’s not “production woes” in the sense of making enough cars, though. Tesla pretty much met all their Model 3 milestones on that old FAQ page:

-First deliveries in July, 2017 (met)
-AWD in Spring, 2018 (actual July, 2018)
-Other versions to follow (P version August, 2018)
-International in late 2018 (actual Feb 2019)

$35k is the only delay, and it’s running 2 YEARS late. They obviously have a huge cost problem. And it’s not clear they can fix it.

“$35k is the only delay, and it’s running 2 YEARS late”

2 YEARS?

That would have been delivery back in December 2016. Do you not know what year it currently is?

Go away troll. Not only are you rehashing already heavily rehashed manufacturing delays, you are wildly off on your BS.

“Except that they never delivered the base Model 3 with full tax credit, like they said they would previously on numerous occasions.”

That’s pure FÜD. Tesla never, ever cited a price for the Standard Range Model 3 which included the tax credit. In fact, until rather recently, Tesla was quite careful to never cite any price for the Model 3 which included any tax credit at all.

Sadly, journalists writing about the Model 3 were not so careful.

Show me where Musk ever claimed they would delivered the Model 3 with a full tax credit! You can try and claim the Model 3 was to be delivered earlier, but that Tesla said you would get a full tax credit with it never..

Nothing wrong with a used Model S with one exception, the available AP hardware. The Model 3s ordered with full AP are guaranteed the gen 3 CPU when it arrives. Looking forward, that was the decision maker for me. I really could have been happy with a Model 3 SR opposed to the LR that I purchased. I am amazed by those who feel like Tesla somehow let them down when they critically needed the revenue and the demand was there to build the more expensive models. I mean, would you rather have your SR and the company be out of business?

Sure that they didn’t had such possible problems in mind when calculating the price? If not, they would be stupid. So in the end, the people who received tax credit pay that…

notting

It does seem plausible that Tesla might drop the Mid Range version as soon as the Standard Range version goes into production, since that would simplify production. On the other hand, Tesla has had at least 3 battery pack sizes in production at the same time for the Model S & X, so it’s possible they’ll keep the Mid Range option.

I won’t be surprised either way.

Based on the Model S history, we could see all 3 offered at the same time, then a move to a whole set of new battery sizes within a year or two. They really just seem to continually improve their products at any chance they can.

Certainly possible, thanks for the input.

Very strange to see multiple downvotes for both your comment and mine, since they contain nothing negative whatsoever — in fact, your comment is quite upbeat.

Some people too stressed out by the holidays, maybe? O_o

They’ve done three battery sizes during transitions and for special promotions (e.g. 40 kWh and s/w limited 60 kWh versions). But they quickly settle on two sizes.

I expect the base version to settle at 240 miles and 38-39k. IMHO they will sell a few thousand 35k versions to reservation list die-hards, but not to the general public. The line-up will be something like:

SR/RWD – 38k for 240 miles
LR/AWD – 50k for 320 miles
P/AWD – 64k for 310 miles

You can add AWD to Base for +4k. “Premium” goes away, but they add a couple options such as white interior.

That does seem likely. What they have done in the past is make one or a few optional features standard and then increase the “base” price.

Does that also apply for German buyers? -> https://www.electrive.net/2018/12/22/tesla-oeffnet-konfigurator-des-model-3-in-deutschland/ (in German).

Summary: Tesla opens Model 3 configurator for Germany. Reduced prices compared with last news. Now long-range dual-motor starting from 55,400EUR, Performance dual-motor starting from 66,100EUR (incl. VAT). That prices are already reduces by the 2kEUR incentitive (excl. VAT) that manufactures must give if the car should be able to receive the 2kEUR EV incentitive (4kEUR together). But there’re still dealing with the German authorities. The application isn’t complete yet, they say.

BTW: Concerning the incentitive for customers: http://www.bafa.de/DE/Energie/Energieeffizienz/Elektromobilitaet/elektromobilitaet_node.html
1. Upload you sales agreement or leasing contract before June 30th 2019 or the budget is exhausted, whatever comes first. The authorities will check the papers they have so far. The initial registration must be within 9 months after their ok.
2. When you got the car, upload bill and car documents within 10 months after their ok.

So time for Tesla is also running in Germany. Ok, currently it looks more like that the date is reached before the budget is exhausted…

notting

Excellent Tesla.
I believe few 1000 customers who could not get their vehicle by 2018-12-31 will benefit from this.

Yup. It won’t be many, and it shows how Tesla cares about the customers. Great move by Tesla, though there are still probably hundreds of thousands of people waiting on reservation.

Reservations are no longer needed you can get your money back

If you cancel your reservation to get your money back, then if and when you order you’ll go to the back of the line with everyone else.

That wouldn’t be an important difference for anyone ordering one of the currently available versions of the Model 3, but as soon as Tesla makes a significant change to the available options — putting the Standard Range version into production, or offering a lease option, or making the PUP (Premium Upgrade Package) optional — then those reservations will become important again.

For some people, cancelling a reservation may make sense. But depending on individual circumstances, others might want to think twice before they do so.

Wow… this sounds quite desperate. Big push to get rid of inventory before escaping to Europe. This is going to be so interesting

Speaking of reality-denying, feeble-minded shorters!

“Wow… this sounds quite desperate.”

If you mean your almost laughable attempt to bash Tesla, I certainly agree. 🙄

“Escaping” to Europe?

Wow, what a way to spin an important market into a negative.

China and the US are important. Europe is cute.

But their money is good to have.

Why are they doing this?
What is the big deal if they break world record in Dec?
In January, the number will plummet anyway.

Two words:

Tax Credit

“Why are they doing this?”

To avoid getting negative publicity in cases where customers were promised the tax credit, but Tesla missed the delivery date for one reason or another. Hopefully that will be rather few customers. Or to put it another way: Tesla wants to maintain its well-deserved reputation for superior customer care.

I’m puzzled by your question; seems like a Captain Obvious answer.

I have been following the EV news and Tesla seems really desperate to set a record number.

It seems to me that shorters and anti-tesla people are DESPERATE to try and claim Tesla is in trouble. Of-course they seem silly to the rest of us trying to say a year end sale is a bad thing when you know later these same people will be going to all the BOXING day sales out there.

Claiming that Tesla selling in Europe (a market bigger than the USA) is also a bad thing according to them, is even weirder. What company does not want to expand to new markets?

No offense, but I’m guessing you haven’t been following the EV news all that long. Tesla makes a big push to maximize its deliveries/sales at the end of every quarter, and an even bigger push at the end of the year. If that’s being “desperate”, then Tesla has been desperate at the end of every quarter since 2012!

Go Tesla!

They are doing it because it is the right thing to do for their customers. Crazy, eh?

I expect tm3 raise 30k

Not a surprise. I half-expected Tesla to offer that, especially since they did something similar in Germany for Model S buyers who were promised a government tax credit, before the German regulators reneged on their agreement with Tesla, changing how they were interpreting the regulations and refusing to grant the credit.

It’s good to see Elon stepping upto the plate. My mid range has been sitting at the local hub waiting to be delivered and despite multiple scheduled delivery dates no car. My home delivery advisor seems to be lacking any motivation to get it to me in time.

If I were critical of anything in the Tesla delivery it was my delivery advisor. There is just no excuse for failing to respond to a written communication for days at a time. On the flip side, I had to take it back in for a rattle and the service response was fantastic. As for your delivery advisor, it will soon be forgotten when you get your Model 3 though. You are gonna love it!

My experience was quite different just three days ago. I had scheduled a 75 minute drive to the north Houston center and they called me to ask whether I would like to get it by home delivery. After a stop at a supercharger on delivery day, my delivery guy showed up and cheerfully showed me a few things, then called an Uber to go back to work.

My delivery advisory was nothing short of amazing, although I did originally suspect phishing when I got that email from someone claiming to represent Tesla from Vegas.

Just got my mid range today. Very pleasant experience and enjoyed having them drop the car off at my house. Apparently the car I ordered had a large scratch on the bumper so they swapped it for an identical one and provided me with a new vin after talking with my bank to make sure it was okay. Very professional and really went the extra mile.

It was hard saying goodbye to my Gen2 Volt but I am looking forward to many years with my model 3.

Congratulations!

BTW, “scratch on the bumper” is probably code for “we sold your car to someone else”. It makes no difference since they provided you with an identical one.

It could’ve been a scratch on the bumper. Don’t forget that elon cares about aesthetics on all TESLA products.

Agreed, although not really a Tesla specific thing. If you’re spending $50k on a car then you expect it to be perfect. Most manufacturers/dealers do the same thing even on lower end new cars. Unfortunate mishaps in the transport phase of a cars life are quite common.

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> Tesla To Pay Tax Credit Difference If It Can’t Deliver Car By End of 2018

I’ll be honest, I was expecting this. So much so that I would have been really shocked if they hadn’t done it.

Given that it only applies to vehicles that they’ve already promised to deliver before end of the month, it won’t amount to much actual expense (as long as they’ve been honest with delivery estimates), but goes a long way in giving confidence to customers with delivery dates right on the end of the month, and is worth every penny in the PR value it generates.