Tax incentives

Tax incentives

Now that we know the President-elect, I have a question:

Are there any potential implications on the $7500 tax credit? I'm a buyer either way, but I'm curious if the administration will take it off the table.

I'm not trying to incite a political fight here, folks. I'm just curious if anyone knows potential actions/consequences of a change in ruling party. Especially since I believe a lot of people were hoping to be a part of the group that received full or partial tax incentives.


KP in NPT | November 12, 2016

I don't think it's something that can just be taken away. It's law and they are capped at 200K per manufacturer. Tesla is on track to reach that in early 2018, at which point they will start to phase out. (not immediately end, but step down.)

That said, with the new administration being climate change deniers that are already looking into ways of withdrawing the US from the Paris agreement, and already being lobbied by the auto industry to get emissions standards reduced, it is doubtful the credit will be extended. At least, I doubt it.

KP in NPT | November 12, 2016

Sorry that should read not END immediately.

EaglesPDX | November 12, 2016

The EV tax credit has no expiration date so the GOP would to vote to end it vs. just letting it expire. The GOP's attack on EV's, environment etc. will be mostly administrative.

1. They will eliminate the mpg standards going forward.
2. The will eliminate the planned EV highway.
3. They will kill any loans to new EV tech or mfg.
4. They will attack CA and the zero emissions states and try and impose lower Federal emissions standards.
5. They will reduce gasoline taxes

Those are the basics for the GOP's attack on EV's.

EaglesPDX | November 12, 2016

So the EV tax credit will likely stay.

bernard.holbrook | November 12, 2016

As a Canadian, I wanted to ask a similar question:

How will Tesla make out under Trump/GOP?

On the one hand, CAFE and US federal EV credits are likely to be reduced or ended.
Yet on the other hand, Tesla is an American company employing lots of Americans.

Like the OP, I am not looking to start a political fight but to understand the risks to Tesla. Some investment sites (like Anton Wahlman on Seeking Alpha) have written that Trump will hurt Tesla badly, perhaps mortally. I would appreciate hearing predictions from Americans from both your Left and your Right as to how the next two years are going to affect Tesla and the Model 3.

WormtownKris | November 13, 2016

I (actually) believe Eagles' list above is probably fairly accurate. And if you think about it, that really plays to Tesla's strengths. Even if they wanted to kill off the $7500 rebates, they couldn't just repeal it in January- they'd have to vote to end it- say at the end of 2017. By that time Tesla will have just about hit 200,000 anyway. So it would only affect Tesla in the faze out period, and would hurt other manufacturers worse.
Everything else will just kill off domestic competition. Easing up MPG standards and EV loans will let Detroit mostly shelve their EV programs. Killing the "EV Highway" will hurt everyone who doesn't have a high speed charging network- everyone except Tesla. Tesla might be facing less ZEV credits, but they just use them because they have them- there is no dependence on them.
So I think Tesla pretty much comes thru the Trump era unscathed, if they don't thrive even more. Trump wants to create more US jobs. Ask the Fremont and Reno areas what impact Tesla is having on their economies.

hoppie2 | November 13, 2016

Trump administration might hurt Tesla a little bit, but the US is only 30% of Tesla's market. With Germany and Norway possibly outlawing all ICE car sales by 2025 to 2030, and China becoming a huge fan of electric cars, Tesla will always have places to sell their cars.