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Rebate

Rebate

https://www.wsj.com/article_email/california-says-tesla-is-too-big-to-fa...

Of all the emails that make me chuckle, the best are those from Tesla own­ers who say tax­payer re­bates don’t mat­ter. They’d buy the car any­way. Ap­par­ently they think Tesla founder Elon Musk is leav­ing money on the ta­ble in deal­ings with them. If his cus­tomers would buy with­out the $7,500 fed­eral re­bate, he’d be a fool not to raise the price by $7,500 and cap­ture the value of the tax credit for Tesla.

Even as Wall Street bulls tout Tes­la’s stock, al­most a con­spiracy of si­lence has sur­rounded the most in­ter­est­ing ques­tions. One of these con­cerns what hap­pens when 300,000 cus­tomers who de­posited $1,000 each for the forth­coming Tesla Model 3 learn that the $7,500 fed­eral tax credit will ex­pire be­fore they can get their hands on it.

patswin | 2017年7月22日

I think people who put in a reservation for the model 3 are well aware that the rebate starts to phase out after 200k vehicles sold. No story here shorty :-)

stevenmaifert | 2017年7月22日

The M3 is targeted toward a lower income segment of the population than those that buy the MS/X. For the M3 buyer, the availability of the Federal Tax Credit could potentially be a make or break. We'll have to see, but I doubt there will ever be any hard numbers on that.

As for the article, the author is misrepresenting the purpose of AB-1184. A quick read shows that the intent is to get more low and moderate income folks into an EV or PHEV. It allows for a point of sale rebate. Specifically it would "Establish a declining rebate plan for the initiative that includes an initial rebate to purchasers of a compact electric vehicle in an amount that establishes a net purchase price, after incentives and tax credits, that approximates the cost of the most frequently sold compact car in the state and gradually reduces the rebate to zero as the program moves to each subsequent rebate step based on achieving successful market penetration targets by income segment." That's a fancy way of saying achieve price parity with a comparable ICE through the rebate program. It starts at the compact car level and is reduced to zero as it moves up to the luxury brands. It will be administered by the CARB, who will set rebate limits based on income levels, just like they do now.

Jcastillo18 | 2017年7月22日

For most people in this Forum most people are not betting on the rebate. We just want a great car that is not over 60 k

carlk | 2017年7月22日

People who buy model 3 in other countries don't get rebate. The last time I checked no one from those countries say they won't buy the car without rebates. $35k is a great price point with or without rebate.

TeslaTap.com | 2017年7月22日

Silly argument. Makes you wonder how any ICE car is sold without a federal rebate, when they are inferior in just about every way to a Tesla. The feature set, styling, and quality matter a lot more than any rebate. It's a nice plus, but that is it. Tesla will still sell plenty of cars after the rebate runs out - just like all the ICE cars sold today.

jordanrichard | 2017年7月23日

OP, there is no Federal rebate.

SamO | 2017年7月23日

Would you buy a house without tax breaks? Cost to US taxpayer: $77B annually.

What about the tax reduction of dividend and capital gains? Cost to US taxpayer is $135B annually.

Tesla gets zero money. It's like a hit piece on Toll Brothers and The National Association of Realtors, for the home interest deduction.

jefjes | 2017年7月23日

The way I look at the tax credit is just the ability to consider adding up to $7500 more options and still fit within my budget. I would hate to have made my entire plan to purchase based on whether or not the tax credit would still be available or even if I would qualify for it at the time of delivery only to find out 1-2 years later that I wasn't going to be able to afford the car I had been counting on plus had $1k of my money tied up waiting for. Did anyone here with a reservation seriously put down their $1k contingent on getting the tax credit to get the car? In today's political climate, and with the ever changing tax codes, if that were the case, I'd probably be questioning all my financial decisions going forward and possibly turn over those kind of decisions to a family member that cares about you and your future.

rafael | 2017年7月23日

Rebate or not, I know I am getting the 3 as soon as my spot in the reservation queue is up. Pre-reveal reservation here, but even if less than 7,500 or nothing, I'm in!

mamafuzbot | 2017年7月23日

jefjes, totally with your thought process. The tax credit is the flexibility to upgrade my options since I am just a poor working class schlump who wants to rid herself of ties to fossil fuel and have a cleaner environment. Base Tesla M3 is still the lowest cost of any car with comparable range. Only the Chevy Bolt vies, with a little more range and a little higher price tag. As for panache... we'll just have to see when I can see a live M3, but I'm betting it's gonna blow the Bolt away.

andy.connor.e | 2017年7月23日

I reserved with the mentality of not factoring in any rebate. You have to make sure you can do it without the incentives. They're not guaranteed. So if you get them, you'll be even better than your initial planning.

If you plan it out that you'll just be able to afford the car with the FED tax credit, bad move. Because you're relying on something that is not guaranteed. But if you plan it without factoring that FED credit, you'll be even better off if you get anything. Always make sure you can afford worse case scenario.

ReD eXiLe ms us | 2017年7月23日

Gadfly: I had honestly hoped you'd never bother to enter this section of the forums. You have not been missed, since I stopped frequenting the Model S forum here. And as long as you have been around, you certainly know full well there is no such [FOULING] thing as a '$7,500 fed­eral re­bate' for electric vehicles in the U.S. There is a Federal EV Tax Credit that is offered as an incentive to buy, but it is not a rebate at all, as you have been told repeatedly for years now. Please, go away.

stevenroglen | 2017年7月24日

The comments and the ignorance that flows at the bottom of that WSJ article are astounding. Everyone seems to forget the bailouts/subsidies that the Big 3 got/get.

RedPillSucks | 2017年7月24日

What am I missing? This is a state incentive to buy, not a bailout of Tesla. Tesla doesn't get any of that money, as the owner gets that when filing their taxes. This only affects people who would not otherwise buy the car based on its price. For the model S in the US, I don't think anyone who could afford the car balking at missing 7500. Its not like China where theres a 25% markup on the price of the car.