Tesla Tax Credits Are BACK | Up To $40,000

[@cyronader]

Forget the tax credit. They need to eliminate the car sales tax instead.

[@matthewp1682]

Give a man a fishing rod vs giving a man a fish

[@ClebyHerris]

@@matthewp1682 giving them a fish vs giving them a larger fish

[@BG-ej5fy]

This tax varies by state. Where I live there no sales tax on EV vehicles

[@marcusbeach9916]

But that’s mostly state tax

[@marcusbeach9916]

Remove state tax!

[@evandipasquale9255]

I'm hoping the model 3 longe range drops below that 55k price tag so I can get that tax credit. I'd end up getting 2k from new jersey and 7,500 from federal which is a huge help.

[@andrewknasiak5290]

Plus no sales tax in NJ right? Huge

[@evandipasquale9255]

@@andrewknasiak5290 yeah right I wish!!!! New Jersey has 7% sales tax which is brutal

[@zettel29]

@@evandipasquale9255 that’s cheap. 7.75% sales tax here in Ohio

[@evandipasquale9255]

@@zettel29 ehhh .75% isn't all that much different and not a deal breaker

[@jakolbfleisch]

Even if the long range model drops below 55K, do we think that will be the base model only? Once you start adding in wheels, autopilot, and interior/paint choices, that number can jump back over the $55k pretty quickly.

[@OMAOILRIAN]

They just need to do away with the tax credit. Instead of a tax credit that everyone might not qualify for, do it as a rebate. If America is serious about Americans driving electric vehicles, we need to make them affordable at the point of sale, not on a tax form.

[@JaridOrgeron]

In NJ you get $4000 “cash on the hood” at point of sale, you pay no sales tax, no property tax, no EV gas tax and you get a reduced toll rate.

[@OMAOILRIAN]

@@JaridOrgeron I might have to buy purchase it there then.

[@daprinceomar]

Thats what this new bill does.. at point of sale instead of after filing taxes

[@chrissasscer5995]

so tax credits (tax WE ALL. PAY) means we are all paying for someone elses car...... yup, seems fair.

[@daprinceomar]

@@chrissasscer5995 dude 60 cents of every dollar we pay in taxes goes to defense funding which makes weapons corporations billions in profits. Yet no1 complains about how ridiculous THAT is

[@daninthemoon2616]

Nice post as always, but it's cars made in North America, which does include Mexico & Canada. So the GM MIM cars will qualify.

[@citizentex5720]

Tesla prices will go down when other EV companies gain traction in the US market and Tesla sales decline. Taxpayers don’t need to be in the business of subsidizing purchases of expensive cars, no matter what makes the cars go.

[@pauldirschka7052]

You might want to define your terms. An analysis of most EV's are equal or less to own and operate compared to ICE. Upfront costs are higher, but operating and maintenance are less. Not to mention the fact that nearly 3/4 of the energy in a gallon of gas does nothing to move the car forward.

[@wwecrazy213]

vehicles manufactured in canada,mexico or the US qualify. But it seems like all tesla M3 dont qualify either because of cost or where the battery is sourced and made

[@billweberx]

I don't think that's true. Batteries can be made in our trading partner countries but the cars have to be assembled in the US.

[@geraldbennett7035]

its Biden not wanting non-union companies to be enriched. Progressivism sucks

[@thezyreick4289]

That’s not true. Tesla has battery manufacturing in America, and material sourcing for them in America. So they can qualify. As for price, not much can be done there unless they deliberately reduce prices. I’m not actually sure they will. The main reason they’ve raised prices are to reduce demand. Dropping them would go against that, especially for a tax credit which will further exasperate their already overwhelming demand

[@serafinaprinze777]

Tesla inc just registered for the trademark "The Greatest Car Ever." Very, very interesting. Brilliant marketing move for the entire brand.

[@wmoID]

@@thezyreick4289 m3sr LFP battery is made in china not trading partner

[@roecroes]

Ryan, Mexico qualifies as North America. Since Ford builds the Mustang-E in Mexico, and GM will build the Chevy Blazer in Mexico, they would object to your definition of North America.

[@L0K0R4C1NG]

Um not to be that guy or anything but Mexico is in Central America North America is the US and Canada

[@michaelgreenberg8589]

there should be something in the bill language that prevents manufacturers (and especially dealers) from just tacking $$ onto the price and taking advantage of the tax credit that is purported to help consumers.

[@Christian.Escutia]

I think the dealer still gets paid the same, they are paid from the federal or state for the tax credit. From what it sounds it should benefit the customer since they are getting the discount and benefit the dealer since they are able to sell more vehicles without changing price

[@dnevs79]

@@Christian.Escutia but I think he is correct in what he is saying, but I believe the bill mentions something about requiring the dealers to display the real MSRP but there is nothing preventing vendors from claiming market adjustments and then providing the tax credit to get you back to MSRP. Dealers are charging 10-20k over MSRP for the Mustang Mach E. I'm seeing 10k over the EV6... THIS WILL CONTINUE given the structure of the current bill.

[@MBergyman]

@@dnevs79 It will continue as long as consumers are willing to pay the markups. I do not want my government telling me how much I can charge for my own time at work, so I would never advocate for it to tell anyone else what they can charge. On the subject of virtual monopolies like the public utilities, I have different views, but if the car dealers want to rip off their customers and shoot themselves in the foot, I say let them.

[@dnevs79]

@@MBergyman yep, unfortunately this is the big issue. Too many people rushing and accepting these high azz prices. No patience or unable to negotiate. I also agree that dealers can pay what they want, but my point is that this just another reason to overprice vehicles

[@MBergyman]

@@dnevs79 I am generally against subsidizing private industry in this way, and I agree with you that the tax credit does incentivize dealers to mark up their products, because in the end, they are pricing their products what they think consumers are willing to pay. The tax credit does not change what consumers are willing to pay, from a monthly payment point of view. If the customer was willing to pay $500/month before a tax credit was applied, they will just as willingly pay $500/month after a tax incentive is applied. It makes zero difference to the consumer. There is still the opportunity to negotiate in the dealer-based system (as opposed to the direct sale system where there is no room), but the opportunity is less when the demand is outstripping the supply, and the salesmen know they can find a buyer at their price without too much of an issue. This is true of every market though.

[@morganoverholt6377]

Quick correction, mexico is part of north America and has participated in north American trade agreements so vehicles manufactured in mexico will be included.

[@Bruh-wb3qw]

Isn’t Mexico technically considered Central America? Pretty sure only US and Canada are North America

[@morganoverholt6377]

@@Bruh-wb3qw Mexico is part of the USMCA which is the current trade agreement for north America, geographically most of mexico is in north America with a small part being in central America..... Realistically the requirement for the tax credit is probably manufactured in a country included in the USMCA

[@ericcousino2068]

It was no accident the term North America was used . Ford builds the Mach E in Mexico. Mexico is part of North America end of story

[@Bruh-wb3qw]

@@morganoverholt6377 ah gotcha, on that i agree with you. I looked it up and turns out Central America is a region in North America. I thought there were 3 terms for north, central, and south

[@morganoverholt6377]

@John James yes I can understand that, I'm not sure of Canada ev credit but mexico at the moment has government subsidized electricity for ev owners, but no discount on the purchase, although Tesla only sells a few hundred vehicles in mexico each week

[@dbetlock]

I'm so confused by the rationale for the $55/80K cap. Why exclude the M3P, at today's prices, but cover all model Y's? Why push people to the larger vehicles if efficiency and greenhouse gas reduction is the goal? I'd like to see the bill cover anything under $45k and let anyone that thinks they need more or can afford more go ahead and pay for the whole thing themselves (Which I just did on a model 3 performance in June). It's like all those Hummer H2's that sold to real estate agents because they were a write off under some farm bill for "private business owners"... never a thought to getting off this larger, heavier, less efficient trend.

[@CoralSea]

Because the people who wrote the bills want to own big SUV.

[@hedleypepper1838]

Thes high priced vehicles getting incentives on just crazy 🤪 should cap to under $30k

[@KSSEND]

I honestly think that our Congress peeps know nothing about current market prices and just throwing these numbers out there. Unfortunately this still benefits the people that can afford vehicles vs those that are struggling. I just think the credit should be income based.

[@happyhippo1710]

The bill was not written only for Teslas there are other brand that qualify..

[@KSSEND]

@@happyhippo1710 I understand that but with all the markups from dealerships, it is a challenge. I looked at an EV6 and it was 58k because of markup. 🤦‍♂️

[@user-fx7tc9uj8y]

Updated EV Tax Credit is great news... BUT changing it to point of sale is a nightmare. The EV maker or Dealer will simply raise their MSRP $7500 and Tesla or others will just "pocket" the credit. This is happening now in CA with the $1,000-3,000 state EV credit that simply "vanishes" into the deal. This has happened to me twice. I would rather keep the IRS Tax credit, Dealers can't be trusted and the new Used EV credit will be even worse fraud.

[@rebeccalorenzana7571]

I have tesla insurance and I live in California and it uses the safety score that is in beta. You mentioned California doesn’t offer it but it does. I got the insurance through the tesla app before delivery and it cost me 125 a month. The safety score can bring it down a lot if I have a score greater than 88, consistently. I only just bought the M3P and my score is at 95, so far.

[@chuchum3]

Yup it then penalizes you for things you cannot control such as someone pulling out in front of you or the so call " following too close " apparently it's only "safe' if you leave 3 car lengths ahead?! WTF oh and the phantom warning of cross over lanes when you're perfectly centered..its all garbage! by the end of the day you get something like 80s and your rate go up and up on things you have absolutely no control over

[@samshare2146]

$1500/yr for insurance for a mid-size sedan. Is that good for CA?

[@ricegobler]

@@samshare2146 yea better than mine of $1500/6 months

[@pandaslayer6922]

@@ricegobler mines 1800/6months lol it sucks

[@arancardoza]

I thought that too, but the score does not affect the insurance premium in California. You can even disable the safety score in the Insurance options found in your Tesla app. Drive as crazy as you like.

[@smileandlaughs]

None of Tesla's car qualify. There's a 55k price cap for regular car and the battery needs to be made in the US. The only car under 55k is the standard range model 3 but the battery is made by CATL and that's a Chinese company.

[@daninthemoon2616]

MY is categorized as an SUV, the Texas made M3 SR has Tesla 4680 batteries.

[@wmoID]

@@daninthemoon2616 texas dont make m3

[@daninthemoon2616]

@@wmoID ur right!

[@KingLarbear]

They need to create like 3 more giga factories in America to catch up on demand to drop prices. Maybe in locations to where they aren't in already.

[@mikeg7ga922]

Are those gigs free? It’s not the demand that drive prices up

[@Supraboyes]

silly billy, they need to quit

[@dmayfield125]

I can't wait to see how much Tesla raises their prices once the tax credit goes through. I wanted a Tesla so bad. But they are so damn expensive now.

[@SMH365]

Same. I thought they were going for affordable prices for the working class.

[@KingLarbear]

@@SMH365 they aren't going to do this when their cars are profitable. But one could argue that by raising prices that they're trying to halt demand. But they don't have enough supplies to keep up with keeping cars being cheaper

[@KingLarbear]

It is going to look great, I bet the model Y goes to $100,000 and the model 3 will be $75,000, then they will slip in the model 2 for less but only as demand drops

[@jerrymcintire7902]

They are very expensive now, after the past year's price increases. I think a price drop is more likely than an increase, as Elon has mentioned it several times now.

[@pazi402]

Sedan credit cap is set at $55k, so unless the long range reduces price the only car that might qualify is the standard M3. Go figure.

[@truthjunkie3]

I think Tesla will raise prices, not lower them. The rationalization for raising prices is that they already have too much demand. They may as well get more profit on the cars they do sell. With a tax credit, they'll raise the price even higher to temper demand.

[@TheDeathvice187]

I model 3 SR is not even worth the 49k price as it stands currently

[@sscustoms5691]

2021 raptor with msrp of 65k and paid 75k... raptor r with nothing different than a v8 is 110 msrp and paying 25 over... plaid x is coming in at msrp with nothing over at 135 and the p90d was the same 2-3 years ago... other companies are far worse than tesla

[@xxZerosumxx]

I have a feeling tesla will lower the price of the LR model 3 to 55k to qualify and raise the model Y price up 3k+ compensate. Model Y are selling like hotcakes so I believe they might just raise it the full 7.5k

[@gregmcfarland5189]

55k price limit already locks out all but standard range.

[@MBergyman]

@@TheDeathvice187 Not to you or me, but the many folks in line to buy one disagree strongly.

[@DoingthingswithDAN]

I love the hidden updates too. I don't think anyone noticed that the turn signal camera no longer blocks the garage door opener.

[@capt.swarvaski1545]

I received $4500 from California clean vehicle rebate plus an additional $7500 when I filled my taxes! Tell me what other car can give $12k in rebates 🥳

[@Rualnys]

If the bill passes you can expect prices to go up nearly as much as the bill allows for a discount at the point of sale. It’s free money for Tesla since the demand exists and people buy these cars regardless of what the company does against the consumers.

[@smileandlaughs]

I dont think Tesla is that kind of company.

[@michaeltan9512]

@@smileandlaughs well, actually they are. They make great products, but anything else seems to fall short compare to many companies, e.g. services

[@dorvinion]

@@smileandlaughs We bought our Model 3 at the tail end of 2019 when the 'credit' was $1,850. Not long after 2020 began when the credit ended the price dropped a coincidentally similar amount. Only an idiot would think you can promise a consumer X amount for every purchase they make and not think the provider of that product will fail to include a somewhat commensurate increase in the price. The politicians are not idiots and they do indeed know this as well, even if they pretend otherwise. They do it this way because it allows them to launder taxpayer monies to their favored campaign donors while appearing as though they are giving the consumer a break.

[@Rualnys]

@@smileandlaughs Wait and see. I really hope I’m wrong because the benefit to the consumer would be massive but with Tesla amidst expansion and scaling they need all the cash they can get their hands on.

[@L3x4Pr0ne]

@@smileandlaughs lol, what? Nothing in their history supports this.

[@kennytinker24]

Correction, must be NORTH AMERICA so mexico and canada included for materials or assembly.

[@shoalins55]

The increase interest rate plus price increase of the ev will probably nullify the tax rebate.

[@YourMajesty143]

Not to mention the higher insurance.

[@pinball16]

@@YourMajesty143 Tesla insurance is about 25% allstate.

[@crbe2159]

yup, taxpayer handouts for Tesla and its rich shareholders.

[@pinball16]

@@crbe2159 instead of the 5 decades of big oil "socialism" and giveaways? I'm good with it.

[@markmeeker2088]

Retroactive? I ordered a model three in the spring of 2021 and took delivery in October 2021 which was after Teslas rebates had expired. I did so hoping that pending legislation would have passed in 2021 and as such would have made my rebate retroactive. Does anyone know if the new legislation will include retroactive rebates for folks in my situation?

[@erikmejia3353]

It is NOT retroactive. The way the bill is worded, it will be for people buying on or after 01/01/2023,

[@shoalins55]

Anything is possible. Fourth quater sales will be affected if this stands for all ev makers as they stand. Imagine everyone from October on holding off on deliveries till January.

[@TheDeathvice187]

This is why you should only buy something if you can afford it twice

[@rj_veg1480]

Not retroactive.

[@alo149]

It should be but only for 1 year Transition Rule.--Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that-- (1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and (2) placed such vehicle in service on or after the date of enactment of this Act,

[@nickjacobsss]

Im holding my breathe on the tax credit. I played that waiting game all of last year and nothing ever went through

[@HoneyDooDoo]

Same. Only thing that happened was prices shot up.

[@pinball16]

Yep Manchin and sinima egos

[@spoiled862]

While I’m disappointed I can’t take advantage of this tax credit, as a Marylander, I’m happy to hear Tesla insurance will be available in Maryland when my M3 is ready

[@spencera.stiegler6138]

I’m trying to understand why the vehicle price limit for the proposed tax credit is $55K for the car, whereas it’s $80K for a truck / SUV; $55K should be more like $70k. Also, there’s already an income limit in place, so why also have a limit in place for the price of the vehicle? If the government truly wants to transition to clean energy swiftly, there needs to be less restrictions and emphasis on ensuring that the wealthy are not taking advantage of the system as they will ultimately be the consumers who likely purchase new EV cars and flood the market with used ones, thereby increasing accessibility to the middle class and lower income Americans.

[@dorvinion]

The point is to try and funnel money to those favorable to the people writing the bill (Big three) and to leave out those that the people writing the bill disfavor (Tesla in particular). Its not to drive EV adoption. Political solutions are always about perpetuating racketeering while appearing on the surface to be something entirely benign and/or beneficial.

[@JasonRosensweig]

Right this was my point exactly. Someone that can afford an $80k SUV DOES NOT need a $7500 tax credit. The average automobile in the US is probably around $25-30k so either cap the EV price just above that to make them competitive or significantly increase the tax credit to something like $15k to bring EV prices in line with ICE cars. The current proposal will do nothing to increase adoption. It will just make it cheaper for upper middle class and rich people to buy the cars the probably would have already bought.

[@fubolibs4218]

Lol. Battery ain’t green.

[@billweberx]

@@youdontknowme2915 You do what you have to do. If you can't afford new, hand-me-downs will have to do. I can't afford new, so I buy used.

[@JasonRosensweig]

@@youdontknowme2915 It is but you get what you pay for too. Chevy Bolts sell less than 30k vehicles per year for a reason. Not saying they are junk but they are obviously not that appealing either or their sales would be much higher.

[@travelingmike40]

Assembled in North America is not assembled in USA. This part sucks as it gives an out to GM and Ford and their “Made in America” BS - all the while building EVs in Mexico.

[@empanadaguru]

I can’t imagine Tesla not pricing their M3LR lower, and offering more for the performance to justify it’s price. I monitoring this closely I have a M3 LR preorder with delivery in November. I would happily wait if I can qualify or there is word of Tesla adjusting pricing.

[@StickMasterKai]

When did you place your order and customizations? My estimated delivery date is in Nov-Dec for M3

[@thothheartmaat2833]

i heard they were trying to produce an even cheaper model

[@empanadaguru]

@@StickMasterKai I placed my order early last month it says Oct to Nov 11th. I’m hoping we have finalized information on tax credits within a couple of months.

[@Eric-iv7cg]

I found that used Tesla wouldn't qualify for the used tax credit in which "The maximum price of a qualifying used EV is $25,000 and it has to be at least two years old. " Since many of the used Tesla are 50k and above you would better off purchasing a new and getting the $7,500 assuming prices go down on Tesla cars. I think the prices for the vehicles will go down and make it easier to purchase. If they can get their battery situation handle.

[@Buggabones]

Wouldnt it make sense to keep prices the same, as they have no problem selling them, and just create a brand new car from the ground up for 30k?

[@Eric-iv7cg]

@@Buggabones I agree but I doubt they will make a brand-new car by 2023.

[@markspringfield6112]

Heard that the battery composition for the standard Model 3 would disqualify it, even though it meets the price limit.

[@lolmanlol18]

I have been seeing this as well, however no one knows for sure. Has anyone found a definitive source?

[@AlwaysLoveBears]

As it currently stands, the RWD qualifies for half.

[@WorkerBee2011]

What I've heard, To qualify for the the full 7500 the battery comp matters, but battery wont affect the first 4k.

[@lolmanlol18]

@@WorkerBee2011 half the tax credit depends on where the battery is assembled, which I’ve been hearing is China. And then the other half of the credit depends on where tesla gets the minerals for the battery itself, which again I’ve heard the rwd model 3 wouldn’t qualify for either or

[@ctuna2011]

55k limit on msrp might be exceeded on some model 3's model y limit at 80k top end model may exceed that to .

[@Canaz73]

We are already massively bankrupt as a country! EV sales are not being impacted. So why would we further subsidize - stupid

[@CryptoNut82]

Exactly and 90% of manufacturers can still provide a $7500 rebate already as of today. Joke of an administration

[@Canaz73]

@@CryptoNut82 I just bought 2 EV’s without getting a tax credit - it wasn’t a factor into my decision. Both were right around $70k - those paying $70k IMO don’t need a tax credit to make it possible to “afford”

[@CryptoNut82]

@@Canaz73 Exactly

[@WalkerOne]

Tax credits just go to pad the profits of the car companies. Given there is more demand then cars, this tax credit is not going to lower the cost.

[@PumpkinKingXXIII]

Yep, it’s a corporate pay off. Without it a lot of the vehicles would not sell. If they did sell the profits would be severely reduced

[@Bioandroid2023]

Not sure if he mentioned it but The used EV tax credit is for sales prices up to $25k & only from a dealership. That eliminates any used Teslas. Maybe a plug in hybrid might be under 25? I expect dealers will inflate the prices 4k.

[@hamilton1317]

My M3LR is scheduled for delivery in September/October. Sounds like I should cancel and reorder in a month so it delivers in January.

[@joeb4294]

M3LR is too expensive to qualify unless Tesla drops the price (hopefully they do).

[@hamilton1317]

@@joeb4294 would be unfortunate to spend 65k out the door for them to lower the price. Makes buying the standard make more sense as the lower price could outweigh the lower range.

[@torchlord11]

I'd still be concerned about Tesla's cheaper varients qualifying for the oncentive since I recall Tesla switching the cheaper varient vehicled to LFP battery packs from China and what does majority of the components from the USA actual mean, plus assembled in the USA. Seems like a lot of vague details right there and I'd read as much of the bill first if it gets finalised and signed into law bedore dropping the car and going into a wait list again which could get even longer if Tesla's does indeed qualify.

[@KurlyPhro]

@@hamilton1317 would you be able to just defer delivery until January?

[@Speedfreak515]

Nope. Tesla is all over that now since so many people tried to do that when there was supposed to be a rebate at the beginning of this year.

[@tonep3168]

So Tesla has been creeping up their prices so that by the time this takes effect, it will cost the car buyer the same as it was before Tesla put the prices up...

[@MrShiggitty]

Runaway inflation will do that.

[@ChopperSickBalls]

Hahahaha smart!!

[@KC-bv9kf]

So what’s your point?

[@torchlord11]

@@MrShiggitty All of Teslas commodities are set up on multi-year contracts years into the future. They are using current inflation as an excuse to raise prices for future inflation that is yet to be determined. No one can no the future and what if inflation doesn't happen as predicted? I doubt do to the language of the bill Tesla will qualify for the tax rebate anyways due to the China made LFP battery packs.

[@coreyalexander4766]

Yes, thank Joe Biden for that kne

[@NoxisFlak-Heyhowareya]

So I ordered my tesla 3 base in June and it is scheduled to arrive in November 2022... should I try to reject delivery's upon inspection until my model 3 arrives after January 1st 2023? To get the 7,500?

[@jackfrost8439]

Odd isn't it? It is like the government is telling us to NOT buy an EV in 2022.

[@alo149]

No it should be retroactive for 2022, i think you just need to claim the credit on your taxes rather than it being applied at purchase starting 2023 l) Transition Rule.--Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that-- (1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and (2) placed such vehicle in service on or after the date of enactment of this Act,

[@PuNicAdbo]

3:02 little tip for everyone. What about an instrument cluster

[@Bakasworld510]

Since Mexico is part of North America, cars assembled in Mexico still apply. You should edit your video to reflect that

[@OweEyeSea]

I was just thinking the same.

[@billweberx]

I think that's only for batteries. Assembly of the car has to be in the US.

[@challengersrt5397]

I still don’t understand the credit, but then again I’m still poor

[@stevensykes3740]

Mr. Shaw, just because you can afford an $100k vehicle does not mean you do not deserve or value a tax break. I know of several people that have saved up for a Model X that are not wealthy. Please do not know proclaim that someone who works hard and handle their money well should not get a tax incentive.

[@joeb4294]

I see your point, but the idea with the new tax credit scheme is to make it more targeted (and maybe make people feel like it's more responsible?). The original tax credit existed to kick off EV manufacturing, so enticing wealthy people was part of the design. The market will still dictate prices in the end.

[@ordinaryhuman5645]

If they had to save up and aren't wealthy: 1. They probably shouldn't be blowing it all on a Model X (which would not be handling their money well) 2. They're unlikely to benefit much from a non-refundable federal income tax credit, because poor (low income) people don't pay federal income taxes. A married couple with two kids doesn't get the full benefit of the $7500 EV credit unless they have north of $100k in income (in which case, they are actually pretty well off, even if they're not wealthy yet) Also, it's worth considering that the median net worth in the US excluding home equity was around $41k in 2020 according to census data... so if you have nearly triple that saved up and free to throw at a Model X, you actually are pretty wealthy.

[@joeb4294]

@@ordinaryhuman5645 As I understand it, the new tax credit scheme will give the up to $7500 EV credit at the point of sale, regardless of the individual's tax liability. It also introduces a $4k tax credit when buying a used EV from a dealership. It includes individual annual income limits to determine eligibility. But, it also introduces caps for the MSRP of the vehicle - so a Model X buyer will not be eligible for any credit. However, there are also a bunch of other stipulations about where the vehicle is made and what percentage of parts are from North America - overall, they made it all way too complicated and people are going to be very confused (if it actually becomes law).

[@ordinaryhuman5645]

@@joeb4294 And when a middle class chump files their taxes and doesn't qualify for a $7500 tax credit because they didn't pay any income taxes I'm sure the IRS will be very nice about it and nothing bad will happen.

[@davidg8248]

live in southern Maine... its painful to get service . Hour half drive to Boston and good luck getting an appointment within weeks... live in southern Florida.(snowbird). repeat repeat. You can't keep breaking records in sales without adding more service centers !

[@jerrymcintire7902]

Does the change from lifetime to 8 year standard connectivity apply to existing owners, or only those who buy after this announcement?

[@Vahn2118]

Yes

[@architectsoftware]

Tax Credit for Tesla owners would not help much due to the income limit, this tax credit is only applicable to folks that qualify based on the below clause, Modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns.

[@KGBALLER50]

I don’t think every Tesla owner makes over 150k. Probably the exact opposite. But hey you never know

[@architectsoftware]

@@KGBALLER50 yeah not sure about any stats either scenario possible, but I just feel a little hard to believe folks buying a car costing more than 50% of their annual gross income

[@KGBALLER50]

@@architectsoftware you’d be surprised it happens a lot. Just look at the Dodge Hell Cat I’m pretty sure not everyone driving that car is making over 150k a year

[@rj_veg1480]

Sooooooo.... My Cybertruck reservation? I guess we'll find out if I get the credit in 3-5 years when they finally decide to deliver...

[@RosePigCooking]

I’m supposed to take delivery of my model Y next month.... does this mean I get the 7500 tax credit when I file my taxes next year?

[@MYWORKINFO2012]

I would like to know too, but according to the video NO. Not effective until 1 Jan 2023.

[@superhostingtucson3302]

You only get the credit if taking delivery after January 1 2023, it’s not retroactive to 2022

[@annado3885]

@@superhostingtucson3302 I'll just extend my car pick up to 2023

[@CoralSea]

Will the Tesla model 3 standard range RWD qualify for tax credit according to the new bill? I heard the battery for that model is made in China so I guess it won't qualify?

[@33kmm33]

I heard the same

[@setlikeamf]

No

[@torchlord11]

If I recall the cheaper Tesla were switched to lfp battery packs that were being brought in from China and the high performanc varients are using the batteries in the US factories so this could be an issue with getting the credit.

[@lordlee6473]

They added this restriction exactly to block China made EVs. If you watch any EV news, you would know China not only leading in EVs, but also in EV batteries, and US cannot compete with it, just like they couldn’t compete with Huawei or Tiktok, so they use below the belt tactics.

[@CoralSea]

@@lordlee6473 Every country will do what they think it's best for their country including China, US, etc.

[@K-EKG]

Perfect. Planning to get my Model Y in April 2023 👏🏾

[@nierautomata9654]

I wish Tesla will also include in cloud profile the software upgrades you purchased like the full self drive so you wont have to purchase it again in changing tesla cars.

[@tonyp2572]

Yea that’s bullshit actually the self drive should be lifetime. What if you want a new Tesla I gotta burn 8k again? Nah

[@peachfuzz1978]

FSD should be part of the driver profile. That would make FSD a easier purchase for everyone.

[@davidlebron7471]

Curious about how a $7500 tax credit would work at point of sale. It's still a credit, not a rebate.

[@dnizel1]

It will be a big issue. Everyone buying an EV will want the credit whether they qualify or not. It will be an administrative nightmare for Tesla and dealers alike. Big opportunity for fraud. Should keep it a tax credit like the current law.

[@nevrock1]

David Lebron - Just do your taxes then subtract the $7,500 as an EV Tax Credit. If you paid more than $7,500 in federal taxes then you’ll get the full $7,500.

[@lilpeppa117G]

@It's not looking good what do you mean 20k back

[@pinball16]

@@nevrock1 no its at time of purchase. Like cash off the top.used as downpayment.

[@nevrock1]

@@pinball16 yea, the new one that hasn’t be voted on yet, but the current one is a tax credit.

[@kugino]

the $4000 credit on used cars is only for cars up to $25k. used teslas wonʻt qualify. also, there is a question whether the RWD M3 will qualify because of its LFP battery, which is made in China. IF the M3 LR were to come down below $55k and qualify, it would be weird if it got the $7500 incentive while the cheaper RWD did not. still so many questions...

[@serafinaprinze777]

Tesla inc just registered for the trademark "The Greatest Car Ever." Very, very interesting. Brilliant marketing move for the entire brand.

[@pmpdx]

But it’s not. These cars are riddled with problems. Mine is. Oy

[@clee1173]

yeah! they listened to us! from day 1 i told Tesla that the blindspot cam view was right in line with my right hand to get blocked from view! thank goodness...it's going to become actually more useful now!

[@h.h.1266]

WTF is up with that income cap. People in San Francisco (and similar areas) are making $200K and still living paycheck to paycheck due to high state taxes and high cost of living. 😑

[@berthogendoorn2133]

I believe you need to read again, Tax credit applies to member's of what was NAFTA, Mexico, Canada, USA on materials and assembly sourced from those countries that are part of the autopack

[@MYWORKINFO2012]

Mmm, of course my model Y is supposed to be here end of this year, now I am wondering if I should delay it a couple months to get the Tax incentive?

[@davidmorrison5186]

I did just that last year and joke is on me now smh

[@daaaaang9838]

@@davidmorrison5186 why

[@davidmorrison5186]

@@daaaaang9838 because they were ready to sign the bill which would have been in effect for 2022. So I sold my 2021 m3 for a 2022 m3. I had it on order so there was no difference in price. I also got all my money in spent on the used car back so it was like driving a car for free. However, I did all that stuff for the tax credit that never went into effect. Now they want this one to start for 2023 purchases like wtf

[@williamwagener]

Your lucky. I had to wait 3 years to get my X model. $1000 down in 2015, finally got it in 2019. Few months, ha ha, your so lucky. they had to build the Fremont factory to build my Tesla X.

[@davidmorrison5186]

@@williamwagener well that was a tad out of my price range bro lol. However my wife got her performance model Y in two days by checking the inventory. So did my co worker.

[@spyderlyf3]

This is such bs on limiting tax credits based on price as we could have gotten MYP instead of a M3P and gotten the credit. What's the real goal and why penalize a company because they are selling more EV VEHICLES?!

[@swiftMyDay]

When they say that the tax credit is implemented at the point of sale it means it will reduce the sales tax?

[@michaellittle4152]

I have this update but cannot move my blind spot camera display. What gives?

[@RB-pz7ce]

Key word, “Dealer”. 16. Dealer can apply credit at time of sale. Tesla doesn’t have, “dealers”…thus no dealer applied tax credit.

[@billweberx]

Yes. I was also wondering about that language.

[@_aldair_7802]

Question: I bought a Tesla back in 2020 and received a Tex credit, if I buy another Tesla in 2023 can I get the tax credit again? Is the tax credit per car bought or per person who buys an EV? Thanks in advance!

[@skivethesmn]

Its per Car, not per person... At least in germany

[@lucknighton1568]

Per car

[@williamwagener]

yes

[@silverdoggg]

I see that nobody has learned from the last couple of years when it comes to these bills. IF any of this passes it won't be the same and will get gutted into nothingness and it will take at least 2 to 3 years of back and forth before it gets passed

[@joeb4294]

The different caps for MSRP between cars ($55k) and SUVs/trucks/vans ($80k) infuriates me.

[@ordinaryhuman5645]

I could see having a different cap for anything used commercially or for business, but yeah, it's pretty dumb otherwise. Most of those trucks and SUVs are going to be used in a way that's indistinguishable from someone driving a subcompact, except they'll be doing it far less efficiently.

[@Buggabones]

If you buy one today, and the delivery is after the credits roll out, will you still apply? Or would you need to order the car when the credits are announced

[@Speedfreak515]

It's based in delivery date because that is when you actually purchase it.

[@nickjacobsss]

Yes, it would apply to the date you pick up the vehicle, because that is when you actually purchase it

[@mikesamyn7054]

Do you mean that the Model Y I put $250 down for and will take delivery in Dec. 2022 will not get this $7,500 Fed credit??!! That would suck!

[@frankcoffey]

If the price cap is an issue Tesla could offer range limited versions but with the normal size battery pack to get the "purchase" price under the cap. Then just offer an upgrade after the sale to unlock the entire range of the pack.

[@DanDeGaston]

They did this in Canada! :)

[@en3rgy187]

In Nevada at Tesla Superchargers, they too will offer a cube with a twist... brothel!

[@Itayc1]

So if I already have an open order (from 3 months ago) for a SR+ model 3 which should be delivered to me on Jan 2023, will I still get the lifetime standard connectivity ?

[@slickspidey]

If you placed your order on or before July 20th your standard connectivity won’t expire

[@BigDsrq]

Wait, oh it’s the standard connectivity that supposedly going away? I wasn’t sure what it was. Not cool.

[@timsmith5133]

Manchin flipped to support the EV credits after he was given a lot. Will he flip back? Will Sinema want something to support this bill too? The passage of this bill is iffy at this time. Fingers crossed though.

[@KT-ei4sh]

Thanks for the well produced informative content. Good work!

[@jasonfranciosa]

Model 3 as of right now does not qualify, the RWD's battery is made in China. The Tesla Semi won't get the full $40k either. I highly recommend you do a bit more research before stating these things. The $40k is the max amount, but its calculated as a difference between traditional vs. electric. It ends up being about $15k

[@vegandiver]

I just had the opposite issue with range estimates and was able to skip two supercharger stops on my last road trip.

[@joshuahorner2639]

How does this tax credit apply to the Porsche Taycan @ $7500 as I believe all of these are assembled in Stuttgart and Leipzig?

[@torchlord11]

It wouldn't qualify it cost to much.

[@coatessculpture106]

Disallowing for incomes over $150/300K discourages high-worth individuals. One would think the gov would want to encourage everyone to go EV. Of course, many early adopters are high income and could set good examples.

[@JaridOrgeron]

In NJ you get $4000 “cash on the hood” at point of sale, you pay no sales tax, no property tax, no EV gas tax and you get a reduced toll rate. If they do make this federal law then that will just stack on top of everything the state gives you.

[@scnative7715]

Would this apply for anyone who lives out of state & buys a Tesla from a NJ Tesla Dealer.

[@JaridOrgeron]

@@scnative7715 you have to be a NJ resident

[@jbivphotography]

Pretty bummed I wasn't able to get any tax credits on my Model Y. Picked I up last October and it looks like these new credits won't be retroactive. 🙃🙃 Thank you for keeping us up to date with the latest Tesla news!

[@ItsBinhRepaired]

Your model y was too expensive to qualify anyway lol

[@stevenanderson9660]

All SUVs under 80k qualify ​@@ItsBinhRepaired

[@victorbruzos8819]

I’m right there with you, bummed I can’t get a credit for 2021 purchase

[@prudhvivahan1722]

Is credit available for 2022 deliveries ordered in 2021?

[@GreensThings]

Same boat bud , I picked up my Model 3 last March . No kickback for me either , a bit depressing, however best top 3 life choices yet !

[@IDamian1]

@ 2:18, did you mean your "other" bottom right?

[@corevision8675]

Hopefully it’s back dated that would help, by the way I’m delaying my financing until January so I can get the tax credit, I ordered a model Y before the price went up two times this year…

[@bac3phi]

The bill said if you delay your order, you won't qualify. Maybe cancel and reorder, but that will loss place in line. I also have a MY 7 seater on order and estimated delivery is November 2022 - Jan 2023.

[@mikkij8534]

@@SirZeusor11 The $7,500 Credit comes off the price of the car from the dealer.

[@smileandlaughs]

Wouldn't it just come out to be the same? Unless it's near the end of the year Tesla won't let you delay it for too long and you'll have to buy it at a new price.

[@bac3phi]

@@SirZeusor11 this new bill is "different" from previous bill. You get the incentive off the price, regardless of your tax liability.

[@SirZeusor11]

reply back to this when you actually own one, ill wait...and prove it,

[@NateJohnsonMusic]

Sucks for those of us who bought our Teslas between 2018 and 2022! Guess we don't matter when it comes to tax rebates

[@sammaverick409]

you could always trade up

[@mattbarnett6902]

I took delivery this year, and if BBB went into effect it would have been retroactive, but good 'ole Joe wouldn't separate the pork-filled healthcare portion of the bill, just left it as all or nothing, and we got nothing. Idiots.

[@NateJohnsonMusic]

@@sammaverick409 that's an interesting idea

[@sammaverick409]

@@mikev4634 $4000 for used credit

[@markspringfield6112]

Just heard today that my M3LR is due to be delivered next week. After waiting since March. Should I delay to next year?

[@madgt95]

Flip it then order new car for next year

[@arnelcatarroja4881]

Nope, Tesla is known to play hardball. They already know that a vast majority of people will try to do what you are considering. Don’t be surprised if they only allow you to extend for up to 30 days

[@markspringfield6112]

@@madgt95 you know… that might just work…

[@madgt95]

@@markspringfield6112 good luck 👍🏼👍🏼😀 wish you good profit

[@Jordan0611]

My YP was being delivered Aug 4, 2022. I requested to decline delivery and have my order placed on hold. The system took my vin from me and currently says “Your delivery is on hold. Let us know if things have change and you are now ready for delivery. “ if that helps any.

[@beejus6756]

I hope all versions of the model 3 can somehow qualify, I ordered my M3P and boy is my wallet shaking

[@wwecrazy213]

Hard cap is 55k, the m3p is way more expenaive than 55k

[@jessepotter365]

@@wwecrazy213 Way more being $7k?

[@HoneyDooDoo]

Im amazed by how many are willing to fork anything over $30k for a Tesla that holds a limited battery charge. Do I own Tesla stock, absolutely, but these prices are asinine.

[@claykorth7244]

great info! Thanks

[@BrianKehm]

It’s a bad move to give more EV tax credits at this point. There’s a supply constraint… not a demand constraint.

[@slickspidey]

That’s getting negated with more competition on the market now. Plus with inflation ppl need to be cut a break

[@jons_collectibles_13]

So, should I cancel my order for the model 3 today and re order it later?

[@mikkij8534]

Depends on how much more it will cost in 2023? My order for a Model Y was in Oct 2021was $55,990. That same car today cost $65,990 and could go up in price. So, I'm ahead $3,000 keeping the car I ordered in 2021 without the $7,500 tax credit. But Darn! I should like to have it on the price I bought it for in 2021.

[@rp1268]

anyone want to bet that the price of these cars will conveniently go up the moment the tax credits take affect?

[@Fatfired29]

They already have over the last year.

[@thothheartmaat2833]

yes and please dont mention how they locked out someones 80 miles of range and demanded more money.. hey wanna drive your car today? im need like 50 grand.. uhhh hey tesla i thought you were supposed to be cool. whats up?

[@sryev9410]

As my wife and I share our two model Y’s based on battery charge this new feature will be awesome

[@johnp2909]

I wonder if Tesla will add the blind spot warning system. I miss that specially when backing up and you can't see people or car right away

[@sweiland75]

Can't you see it with one of the Tesla's cameras?

[@carrickgames]

Maybe you should turn your head and look

[@corstian_]

@@carrickgames 😁

[@satybby]

it already does that it will yell at you if youre backing up and theres a car/pedestrian coming behind you

[@olemissjim]

What?!? There is a GIANT ~17” screen filled with L & R and center video

[@Dglinski2]

So if I’m looking for a Base M3 or a M3LR I’m better off just waiting a few more months to see how this tax credit pans out?

[@JasonRosensweig]

Waiting a few more months could mean that the wait time to get one goes up if prices start to come down. If you're ok with possibly having to wait until the end of 2023 then sure it can save you some big bucks. Of course of the SR Model 3 is disqualified because of the China-sourced LFP batteries then waiting will be a waste of time.

[@jons_collectibles_13]

I ordered a model 3 in May, won’t take delivery until November/December thinking I should cancel but don’t want to wait even longer, also hearing the the LPF battery is made in China so would qualify for the full credit…. 🤷🏻‍♂️

[@jons_collectibles_13]

@@JasonRosensweig thanks Jason. I’ll keep my rwd model 3 on order

[@JasonRosensweig]

@@jons_collectibles_13 You will not be disappointed 🙂 I went for the M3 LR and I make excuses often to drive it somewhere lol. I even use it as my remote office even though I work from home 😎

[@ChopperSickBalls]

Correct. But your wait time will be pushed heavily. However, if you're okay with that, you will be saving some serious cash!

[@samshare2146]

"They should be able to lower prices" LOL...only in lala land. Read what Musk said again...between the lines. He knows inflation is not coming down soon and that will give him the opportunity to raise prices...especially on the Model 3. He isn't going to let that tax credit (aka corporate subsidy from Congress) go to waste.

[@joeb4294]

It's worth noting that the used $4k tax credit can only be obtained by buying from a dealership. I suppose this makes it easier for the IRS to manage (it's also quite a coup for stealerships).

[@wmoID]

The used ev cant exceed $25000. Useless

[@stephenl.154]

Buy from a dealership and it must be only the first time it is resold.

[@dbetlock]

A dealer certified Leaf that's under $10k and get like half of it back!

[@Turbo6019]

Inflation is high enough…if this tax credit passes then inflation will be even higher so is that what everyone wants?

[@TheElectrocar]

What does a tax rebate have to do with inflation? The government isn't spending any money, the tax credit just gives you your money back that you paid to the government.

[@nick87nd]

I’m about to take delivery of a Model 3 so that sucks the tax credit may start 1/1/23.

[@jackjohnson6339]

how will they give you the tax credit at the point of sale when you don't know what you will be earning this year? More than 50% of the US population pays no tax at all. are dealers to be accountants now to go through your tax records? will the IRS hit you with a $7500 bill when you don't qualify at tax time?

[@premiumuser867]

That's my question as well! Also, they are very specific about the source country of the battery's raw material. How would a consumer even know that ? Tesla has a wide list of raw material suppliers and they bounce between them as supply and demand changes. That means one Model Y could qualify and another wouldn't.

[@beachcrow]

They count the previous or current year "Adjusted Gross Income" whichever is lower. It's also a "refundable credit" so you don't need to pay tax to get the credit (unlike the current EV credit).

[@jackjohnson6339]

@@beachcrow I'm on a fixed income and pay no tax. you're saying I could still get the $7500 off a new Tesla?

[@beachcrow]

@@jackjohnson6339 Yes, if the new bill passes as a *"refundable tax credit"* as it's currently written and you take delivery after 1/1/2023. The current EV credits are *not* "refundable" so you need the tax to offset the credit.

[@jackjohnson6339]

@@beachcrow wow that's great news. thanks a lot

[@deeppatel9383]

So my model Y performance is coming between September and October so no tax credit for me then

[@corevision8675]

Hopefully it’s back dated that would help, by the way I’m delaying my financing until January so I can get the tax credit, I ordered a model Y before the price went up two times this year…

[@happyhippo1710]

@@corevision8675 I have not heard any successful stories of people delaying it after 2 times. Tesla has cancelled their order....

[@NeilBergman]

Bummer that the potential law doesn't allow for vehicles purchased between the time that you could not get the Federal tax credit for a Tesla and the start date of the new law of 1/1/2023. We bought our Model Y in June 2021 and it would be so nice if the new law was retroactive to our purchase.

[@williamwagener]

blame the incumbents in Congress, not Tesla.

[@BobFrTube]

Finally, shared profiles! Something I wrote about 25 years ago. Now to get it to work across manufacturers?

[@Aves_1]

Honda: we want to go full ev Also honda:only sells their EVs in europe

[@nithinrs1004]

I have my M3SR+ delivery in and around November December. Should I delay the delivery? If yes ,will the next delivery again be 6 months late ?

[@setlikeamf]

Tesla will cancel your order.

[@blf3241]

You can ask your sales rep about delaying delivery if this passes. They have certainly done allowed it for lots of reasons many times in the past.

[@nithinrs1004]

@@blf3241 Yeah I will try to do that once there is official confirmation about the rebate.

[@MOBMJ]

the point of sale part is cool and a tax credit is better then nothing, but in this day and age $7,500 is a disappointment. It should be at least $10K I believe. Also the price limitations of $50K and $80 makes no sense I think both of these would be nice if they were both under $100K

[@thothheartmaat2833]

while we're all just throwing money around and inflation is rampant.. lets set minimum wage at 250,000 a year.. thats the only way we're going to be able to afford anything...

[@dudelyduderson3216]

Is it a tax “Credit” or “Rebate” because the wording implies a credit, however I remember the EV reform bill was to convert the Credits to Rebates. Also when EXACTLY does the “Point of Sale” apply? For vehicles manufactured for each customer (Tesla), does the PoS credit apply when ordered or when final payment is made? I ordered a Tesla Model 3 SR+ a month ago and delivery is set for late December/Early January. Depending on when the Tax credit is applied, I will or will not qualify.

[@1TUFZ71]

While I am very hopeful that this bill passes, it will be a bit of a slap in the face for those of us who ordered a 2023 Lyriq and are expecting to take delivery later this year - potentially after this is passed but before it is in effect....

[@geraldbennett7035]

yeah, politics sucks

[@azspotfree]

That's why I've been holding off on a purchase. I'll wait until it's enacted. You'll be able to buy a new bolt for 19k after this bill passes. Plus, I've heard that the dealer can claim the credit, meaning, you'll get the 7500 discount right when you buy it.

[@rhdtv2002]

Such is life

[@33kmm33]

Delay your delivery?