Will Tesla accept the 2024 EV tax credit off the purchase price?

[CyberSleuth]

Next year, when some of us may actually receive the Cybertruck, the IRS is supposed to expand access to the federal tax credit for electric vehicles.
Specifically, it will be possible for buyers to transfer their credit to the dealer, and receive the equivalent price off the vehicle.

https://home.treasury.gov/news/press-releases/jy1783

"When a buyer chooses to transfer the credit, registered dealers will reduce the purchase price of the vehicle or provide cash to the buyer. The amount provided must equal the full amount of the credit available for the eligible vehicle."

My question is, will Tesla be considered a registered dealer in this instance?

The idea of getting $7500 off the purchase price of the Cybertruck instead of a deferred tax credit is appealing.

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[cvalue13]

My question is, will Tesla be considered a registered dealer in this instance?

yes

the real question you should be asking yourself instead is:

will the CT (with your desired options) qualify for the tax credit in the first place regarding MSRP?

That’s the $80,000 question

 

[Crissa]

Tesla has always done everything it can to make sure its cars can take advantage of tax credits and incentives.

-Crissa

 

[BayouCityBob]

The IRA definition of a deal is this:
‘‘(8) DEALER.—For purposes of this subsection, the term
‘dealer’ means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) to engage in the sale of vehicles.”

So Tesla is not a dealer in Texas but is a Dealer in some other states. Unclear if Tesla can act as a dealer for Texas buyers by leveraging it California dealer status, for example.

 

[Crissa]

The IRA definition of a deal is this:
‘‘(8) DEALER.—For purposes of this subsection, the term
‘dealer’ means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) to engage in the sale of vehicles.”

So Tesla is not a dealer in Texas but is a Dealer in some other states. Unclear if Tesla can act as a dealer for Texas buyers by leveraging it California dealer status, for example.

The feds don't care what state Tesla is authorized to sell in. Unlike Texas.

-Crissa

 

[Petertsai]

Not sure why Elon does not make big stink about dealership. Giga Austin is in Texas and so is starbase X. Lots of leverage there. I would short selling dealerships and ICE repair shops if I am able to.

 

[cvalue13]

So Tesla is not a dealer in Texas but is a Dealer in some other states. Unclear if Tesla can act as a dealer for Texas buyers by leveraging it California dealer status, for example.

I believe the definition of ‘dealer’ is already/also used in the current tax paradigm?

is it a definition that is only relevant to the on the hood rebate?

in any event, Tesla is a dealer - the thing is just what ‘dealership’ a given owner has to purchase from in a given state. EG in Texas we have to purchase from a dealer in another state, with the car delivered to Texas.

not really different than if I found an F150 for sale on a lot in Oklahoma, and asked them to drop it off to me

 

[Startreknerd]

Next year, when some of us may actually receive the Cybertruck, the IRS is supposed to expand access to the federal tax credit access.
Specifically, it will be possible for buyers to transfer their credit to the dealer, and receive the equivalent price off the vehicle.

https://home.treasury.gov/news/press-releases/jy1783

"When a buyer chooses to transfer the credit, registered dealers will reduce the purchase price of the vehicle or provide cash to the buyer. The amount provided must equal the full amount of the credit available for the eligible vehicle."

My question is, will Tesla be considered a registered dealer in this instance?

The idea of getting $7500 off the purchase price of the Cybertruck instead of a deferred tax credit is appealing.

I doubt the quad or tri will come in under $80,000 for one thing. And by the time they get to the dual it'll be another year so we have a long time to worry about if this applies to the CT.

 

[cvalue13]

I doubt the quad or tri will come in under $80,000 for one thing. And by the time they get to the dual it'll be another year so we have a long time to worry about if this applies to the cyber truck.

there is no quad

And they’ll be shipping mostly duals early on

(though there may be an unusually high % of tri’s in the first couple of delivery batches, in the months following that tri’s will be relatively rare)

 

[RandyS]

there is no quad

And they’ll be shipping mostly duals early on

(though there may be an unusually high % of tri’s in the first couple of delivery batches, in the months following that tri’s will be relatively rare)

My bet is on the model of the truck they can immediately deliver that costs the most (to generate the most revenue possible). In the case of when the Model 3 was rolled out, they didn't have the performance model yet (it took about a year more), but they made all the early buyers spring for the larger battery and the premium interior. And if you signed up for FSD, so much the better...It appears we're also heading in the direction where the first trucks delivered will be more expensive than the $80K tax credit limits...

 

[rizvend]

Not sure why Elon does not make big stink about dealership. Giga Austin is in Texas and so is starbase X. Lots of leverage there. I would short selling dealerships and ICE repair shops if I am able to.

I would like to be in the room when this argument plays out...with popcorn.

 

[PilotPete]

My bet is on the model of the truck they can immediately deliver that costs the most (to generate the most revenue possible). In the case of when the Model 3 was rolled out, they didn't have the performance model yet (it took about a year more), but they made all the early buyers spring for the larger battery and the premium interior. And if you signed up for FSD, so much the better...It appears we're also heading in the direction where the first trucks delivered will be more expensive than the $80K tax credit limits...

Tesla is nowhere near the same financial situation as they were for the 3. Look for them to start with whatever they can produce the fastest and clear the most people out of the que. And if you still think they are only motivated by financials, then think of this equation...

Who makes more money? Concept A; where you build 50 a week initially at a $20k profit each, or Concept B; where you build 100 a week at a $11k profit? And remember their mission, to convert the world to EVs as quickly as possible. Now which one makes more sense?

 

[RandyS]

Tesla is nowhere near the same financial situation as they were for the 3. Look for them to start with whatever they can produce the fastest and clear the most people out of the que. And if you still think they are only motivated by financials, then think of this equation...

Who makes more money? Concept A; where you build 50 a week initially at a $20k profit each, or Concept B; where you build 100 a week at a $11k profit? And remember their mission, to convert the world to EVs as quickly as possible. Now which one makes more sense?

Yes, they are in better financial shape, but....notice in my original response where I said "that they can immediately deliver"?

They've been spending a ton of money over the last several years to get the truck and the Gigafactory to this point to be able to build...They have ambitious plans for expansion and need revenue for that as well. I may be wrong, and will be the first to admit it if it is true, but I still think that they will come out with the pricier truck first "that they can immediately deliver"...I guess we'll see soon...

 

[cvalue13]

Yes, they are in better financial shape, but....notice in my original response where I said "that they can immediately deliver"?

They've been spending a ton of money over the last several years to get the truck and the Gigafactory to this point to be able to build...They have ambitious plans for expansion and need revenue for that as well. I may be wrong, and will be the first to admit it if it is true, but I still think that they will come out with the pricier truck first "that they can immediately deliver"...I guess we'll see soon...

here's the glitch:

all that capex spent to bring the CT to market, means that Tesla makes more money on volume than on per-vehicle MSRP. (not to mention the market optics of high volume numbers.)

but meanwhile they're battery and production constrained for the near/medium term.

that all points towards pumping out as many duals as possible, as fast as possible.

in fact, all else equal i dont think they'd prefer to sell tri's at all right now, if they could avoid it. but they cant *not* announce the tri/performance model. so the middle path is to announce it alongside the dual as though they're equally-available options, then quietly know that they'll build and ship relatively few tri's as possible until scale and constraints relieve.

but meanwhile they'll make every marketing and optics effort to make it seem like duals and tri's are widely available and being pumped out. for these reasons, despite what I've said above, I wouldn't be surprised if the first few lots of deliveries to retail customers are disproportionately tri motors. that anchors the mood and sets the optics, such that thereafter they can scale back on tri's with minimal blow-back. they can say 'tri demand was unexpectedly high and we're struggling to keep up,' yadda yadda. basic corporate math.

for an analogue, look at the 4680 Model Y. You have to pay close attention to realize they're rare as hens teeth. Tesla has managed the optics well.

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