Tesla to get access to $7,000 tax credit on 400,000 more electric cars in the US with new incentive reform

[FairfieldCT]

https://electrek.co/2021/02/11/tesla-7000-tax-credit-electric-cars-us-incentive-reform/


Does this get anyone thinking? Perhaps more Mach-Es order cancellations perhaps?

My Rapid Red FE is expected to arrive on 3/1, I just looked at my order dealer paperwork... $59,800 - $7,500 (federal incentive) - $2,500 (Ford Options) = $47,300

Red Tesla Y - LR assuming new incentive legislation passes... and chances are that it will... $51,990 - $7,000 (new federal incentive) = $43,990

Tesla's manufacturing issues are well documented, but now I hear high pitching noise and I starting thinking that if I don't get absolutely everything I want from my dealer, I have a much clearer alternative...

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[buzznwood]

It will be interesting to see if this passes it will certainly have me thinking depending on the final price of the GT with options, ford already had to give the mach-e a price reduction and may have to offer additional incentives to appear competitive not just against tesla as this year we expect to see a whole host of competing BEV's being released and those that have yet to officially reveal a price now know upfront that using the tax credit as a way to level the price against a non tax credit competitor is no longer an option.

 

[agoldman]

doesn't affect my decision at all. mach e all the way.

 

[timf]

Tesla will probably raise their prices by $5,000 if and when a new tax credit comes into effect, negating most of the benefit. They had previously reduced prices as the tax credit phased out.

 

[BlueMach]

IF, and only IF the bill passes, and only IF it is unchanged. Who knows what changes will be made between now and a presidential signature, if that happens at all?

 

[Jimrpa]

I’ve heard too many horror stories about Tesla “service”. Given their quality issues, their service issues, and how they had to be dragged, kicking and screaming, into fixing their stupid computers with SSDs that their software essentially ended up bricking - no thanks. Oh, and look at the total value proposition - how much does Tesla charge for their Advanced Driver Assistance Systems? (“autopilot”?) Mustang Mach E is a no-brainer.

 

[DaveRuns]

For what it's worth, and this is just my experience so far....I was very hesitant to purchase a Model Y because of all the issues with quality, fit, and finish. Then, I started talking with Co-Workers and friends who recently took delivery of their Model Ys. Only 1 of them had an issue (about a month in, they had to take their car in for service due to the driver's seat not moving back or forward properly). Otherwise, they had good things to say. Ultimately, I decided to the risk was worth it, and I bought one. As I previously noted, I did not notice ANY fit or finish issues, no gaps, no roof falling off, no steering wheel coming undone, etc. I had an exhaustive check-list I used at delivery, and there was nothing to report. Now, I've only had the car for a few weeks, so maybe something will go wrong (knock on wood that it doesn't), but so far, everything is working as required, and I'm very happy with it. I believe that Tesla has increased their quality control processes as of late. Is it perfect? Probably (likely) not. I still probably wouldn't order one towards the end of a quarter, but that's just me. I live 25 min away from a service center, so I'm not too concerned if something does pop up. When/If I do have a service related issue, I'll gladly come on here and report my experience....good or bad. I'm not a Tesla 'fanboy' by any stretch. Hell, I waited over a year to get the MME and was a month away before I pulled the plug. Also, I spend more time on this forum than I do looking at any Tesla forums. I just thought I'd share my perspective.

 

[jhalkias]

Tesla will probably raise their prices by $5,000 if and when a new tax credit comes into effect, negating most of the benefit. They had previously reduced prices as the tax credit phased out.

Something like this is BOUND to happen. Tesla needs to find a way to make money in the next two years without all that dependence on carbon credits.

 

[CHeil402]

As the article points out, I think this might hurt Tesla in the short term since this won't be retroactive (as it's currently written). So people that might be thinking of getting a Tesla would instead wait to see if this passes as not to miss out on the credit. I'll be following this news, especially with my MME not coming at this point until late March or early April (build week 1/24 but still no build).

 

[JonathanEzor]

It will be interesting to see if this passes it will certainly have me thinking depending on the final price of the GT with options, ford already had to give the mach-e a price reduction and may have to offer additional incentives to appear competitive not just against tesla as this year we expect to see a whole host of competing BEV's being released and those that have yet to officially reveal a price now know upfront that using the tax credit as a way to level the price against a non tax credit competitor is no longer an option.

Interestingly, what is keeping me from choosing the GT over, say, the Premium ER AWD (other than the lesser range of the GT, and my lack of need for a 3.5 sec 0-60 time) is that, in New York State where I live, the threshold for NY's full $2,000 rebate off the purchase price is an MSRP below $60,000. Above that, the rebate goes down to $500. Right now, the Premium ER AWD falls under the $60k threshold, while the GT is above, so the existing price difference between the two would *increase* by $1,500. (That $60k threshold is why Polestar also dropped the MSRP of the Polestar 2 just below $60k.) {Jonathan}

 

[DBC]

First it's a proposal. It's a proposal that I think will pass IN SOME FORM, but at this point it's just a proposal that has bipartisan support (all those senators from states like SC and TN which will benefit). On the form side of things, it's hard to square this credit with the idea of "equity" since only relatively well off people can take advantage of the credit. Would probably be best to change it to a payment to the manufacturer and a POS rebate.

It won't have any effect on sales of MME vs MY. It will have an impact on BEV sales as a wholeIt's a proposal. As mentioned, Tesla and GM will simply raise prices by some amount to make up some or most of the new incentive. But definitely good for the sector and particularly good for GM IMO.

Again, the tax credit simply decreases the MSRP. So the fair market value of a MME at the moment is MSRP - tax credit.

 

[mwsno]

WA State's EV incentives are for EVs under 45k. with $2500 credit. Would have to get a Select with no options to make it.

The exemption applies to dealer and private sales of new, used, and leased vehicles sold on or after August 1, 2019.

• New vehicle transactions must not exceed $45,000 in purchase price or lease payments.
• Used vehicles transactions must not exceed $30,000 in fair market value or lease payments.

 

[malba2366]

They won’t raise the price $5000...if they do that the politicians will be all over them. They may raise by $1000-1500. Hidden in the earnings report was that Tesla would have made money from auto making operations if it were not for the huge stock compensation that Elon Musk received for meeting share price/operational targets - these were awarded well before anyone would have predicted (share price hitting 750 I believe).

 

[VegStang]

I think the real question that gives me pause is will Ford lower prices if this comes to pass. I'm pretty sure Tesla will raise prices as they have in the past to adjust for the credit, but this would appear to put pressure on Ford and would be an irritant for me if they end up dropping the MME price not long after I take delivery. Yes, early adopters pretty much always take a hit on price, but still.

 

[malba2366]

I think the real question that gives me pause is will Ford lower prices if this comes to pass. I'm pretty sure Tesla will raise prices as they have in the past to adjust for the credit, but this would appear to put pressure on Ford and would be an irritant for me if they end up dropping the MME price not long after I take delivery. Yes, early adopters pretty much always take a hit on price, but still.

With the 2500 options credit in place and Tesla with a small price hike they will probably be right in line in terms of pricing. I don’t think we will see a big drop in price initially. The leases will probably improve to compete.

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