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My plan for a virtual extra year of tax credits

My plan for a virtual extra year of tax credits

When Tesla is in the quarter where they expect to hit the 200,000 mark for domestic sales, they can concentrate on local deliveries until they are just short of that number. Then they can start making nothing but domestic vehicles to ship out to other states, going from the farthest to the closest, in a way that they arrive just at the beginning of the next quarter. They can pad any gaps with cars for export so they don't end up idle. That way, the next quarter will get the full credit and be the one where the threshold is hit. They switch production to 100% for US deliveries, so the next two quarters have a year's worth of cars. In the final quarter, they make ones with far deliveries early in the quarter and close the quarter with ones for Fremont pickup that are sold just as they get off the assembly line, possibly with a due bill which buyers would gladly accept if it means getting the tax credit.

That way, it won't affect total annual sales, they will have one artificially weak quarter due to vehicles in transit, followed by an artificially strong quarter. And Musk doesn't give a damn about short term stock fluctuations. They can then concentrate on international sales to catch up overseas, at which point everybody else will get cars around when they would have, had schedules not been shifted.

Red Sage ca us | 4 avril 2016

I seem to remember there was a provision regarding this Federal Tax Credit program that used the phrase 'made available' or something to that extent... I interpreted it as meaning when the vehicle is built with a specific VIN assigned for use in the US. That the eligibility of the program was relative to the specific car itself, regardless of when an end user takes possession of it. Of course, if you take Delivery in 2018, you would file for taxes mentioning the transaction in 2019... That is, certain VINs, Delivered after the expiration date would still be eligible for the full $7,500 Federal Tax Credit, even if the new Owner took possession a month or three later. I don't believe it is the first 200,000 people to take Delivery in the US, but the first 200,000 units that are offered as plugin electric vehicles for primary use on US roads that delineates the countdown to the phaseout.

Haggy | 5 avril 2016

If it comes down to building the car with everything but the wiper blades installed, then it might make sense to finish the production of the vehicle at the point of delivery. Whatever the rules are, the car would at least have to finish production. Arguably, production is not finished until the license plate frame is mounted.