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The GOP tax bill kills a $7,500 electric-vehicle credit — and that's terrible news for Tesla


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It never should have been allowed on vehicles over $50,000, however I'm not sure how much it will hurt Tesla as they along with GM are not to far away from hitting the max number allowed under the old system. This will just give Tesla an excuse as to why it failed in a 2 years. However if it also kills Solar and other rebates it is dead. Very few people that buy a Tesla need it to actual afford the car.


Even Ford is about 1/2 though the Credit they would be allowed at almost 100,000 sales of PI/Electric vehicles.

Edited by jasonj80
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$50,000 is not that expensive any more. And for some people the credit is needed to push them to buy. This is more of an attack on their anti-climate change position and to feed their base. Of course the whole tax "reform" is a joke. It is a tax cut for the rich that will screw the poor and the middle class and now the planet.

Well it didnt take long for this thread to go south with this superb analysiss??? Edited by tbone
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$50,000 is not that expensive any more. And for some people the credit is needed to push them to buy. This is more of an attack on their anti-climate change position and to feed their base. Of course the whole tax "reform" is a joke. It is a tax cut for the rich that will screw the poor and the middle class and now the planet.

 

This thread will go downhill fast. Let's not get into the politics of it.

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Nobody likes Elan the snake oil salesman. Is what he claims Tesla will do BS? Yep, we all know that here. Is the technology pretty good. Yes, it's good. Does he know how to run an automobile company? Not a freaking clue! Does he care? Nope!

 

I need to do more research but I didn't think you could get that credit on $100,000 cars to begin with. Looks like I may be mistaken.

Edited by jcartwright99
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Stop right there.

I do agree but from a policy side and the way we regulate CAFE and such it was needed it as the electric vehicles were more expensive and you were requiring manufactures to build electric cars. The idea of it was that then everyone that was looking to buy a new car could afford an electric car if they wanted, just not the rich. This was the theory.

 

When you look at what happened though is that they became compliance cars, the $7500 was a subsidy to the manufacture for the car that just lead to uber cheap leases. Tesla became a status symbol to mid-six figure earners and they used the program to leases a lease or purchase that they could have easily afforded to begin with, and in some states the reason they got them was just to drive in carpool and reduced toll lanes. The whole program didn't work out as intended.

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Allowing the credit to subsidize a 2 or 3 year lease was the problem. An entire community near me leased a bunch of Leafs because they were cheap - had nothing to do with whether they were electric or not and after the lease they went back to cheap ICE vehicles.

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The fact that Musk didn't mention actual production numbers says a lot.....

 

Let's see if they can hit the first milestone, 1,000 builds in a month...

 

And Tesla's cash burn continues because it can't get going

with production of the 3 and get a decent revenue stream.........

Edited by jpd80
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something to keep in mind, the program was a tax credit. It wasn't just a check cut to the buyer for that whole subsidy amount. You had to have tax liabilities up to that amount to get it in full. For the segment of the population that would have most needed the subsidy, they wouldn't have gotten much from it in the first place as they wouldn't have had anywhere near that amount in tax liabilities. It was as much a hand-out for the mid to upper middle class on up to the rich to get them to buy the vehicle as it was a plan to help save the environment. While I understand the desire to get those that could afford to support the vehicles after purchase to buy them first, it was never about helping people to buy them and instead to make them attractive financially to those that could buy anything.

 

People are saying that this would hurt Tesla, but it won't. Beyond being just about through with the program themselves, it will make the EVs from their competition less palatable as well. It's lasted just about long enough for Tesla to get to a position to make a mass market EV that can be sold at prices competitive to comparable ICE vehicles.

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^^ Govt has been edging away form electrification support for a while with lowering or even

elimination of tax credits for hybrids and PHEVs so it was inevitable that a review would happen.

 

The government wants the industry to be self supporting but I wonder if this announcenent

puts the brakes on competitors EV plans for now until they become more economically viable.

 

I know that "viability" comes from an established business models and is a completely foreign concept

to new age disruptors who have no plan B but it is the foundation on whether a start up's ideas and dreams

grow into profit or not....

Edited by jpd80
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Allowing the credit to subsidize a 2 or 3 year lease was the problem. An entire community near me leased a bunch of Leafs because they were cheap - had nothing to do with whether they were electric or not and after the lease they went back to cheap ICE vehicles.

for those 2 or 3 years there was less CO2

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