Tesla's $7,500 EV tax credits will soon disappear as the company surpasses 200,000 US...

By Polycount ยท 8 replies
Jul 12, 2018
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  1. The primary reason for this development lies in car sales.The IRS' EV tax incentives were only ever intended to be a temporary measure.

    They were designed to encourage car makers and the public to move towards zero-emission vehicles.

    As such, these incentives have a limit for each manufacturer. In Tesla's case, the company has officially sold well over 200,000 cars in the US, meaning the IRS' tax credit will be on its way out. While it's tough to say how heavily this will impact Tesla's bottom line, it's likely said impact won't be positive.

    Tesla's vehicles, even the mass-market Model 3, can get pretty pricey, especially when they're packed full of optional features. With that in mind, losing $7,500 in savings may be enough to deter potential customers from buying the vehicles in the future.

    There's some good news, in any case. The IRS' tax incentive system disappears gradually, likely to give companies time to adapt and develop new marketing plans. So, for the remainder of 2018, the $7,500 tax credit will remain intact.

    Next year is a different story. At the start of 2019, the tax incentive will be halved to $3,750. During Q2 2019, it will be halved again, dropping the total savings to $1875. Beginning in 2020, the incentive will be gone.

    Put simply, if you've considered purchasing a Tesla vehicle for some time, now is the time to do so.

    Permalink to story.

     
  2. p51d007

    p51d007 TS Evangelist Posts: 1,459   +774

    Another unfair advantage for the EV manufacturers. If EV's are that good, then they need to be manufactured in such a way they are affordable for the mass public, not the "so called" rich or higher income brackets.
    Personally I think PLUG IN EV's are a joke. If enough people had them, they would strain the already over burdened power grid, which really hasn't had much new life, thanks to shutting down coal/nuclear plants and replacing them with wind/solar, which have to have energy STORED for later transmission and can't be "cranked up" like nuclear/coal and to some extent, hydro power. Then there comes the problem of the strain on the grid itself which can't handle the load capacity.
    If you really want alternative energy vehicles, come up with something like Back to the Future..."Mr. Fusion".
     
  3. yRaz

    yRaz Nigerian Prince Posts: 2,565   +1,706

    Model 3? Toyota Prius? Honda Civic/accord hybrid? Chevy bolt?

    And our lack of investment into our electric grid to support an EV infustructure is not the fault of the EV. Other countries have no problem with EVs esspecially since 220 lines are standard instead of 110 in the US.

    I'm not against ICE cars at all, I love the sound of a bug V8 or even my old trucks 6.8L v10. The thing is, for basic economy card and grocery getters, EVs are the future. Realistically, if you aren't a car enthusist or in an industry, like construction, where stuff like range and quick refueling are a big deal, you have no need for an ICE car.
     
    Reehahs and DaveBG like this.
  4. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 1,122   +1,144

    See, I disagree. For a new type of product that requires massive infrastructure change, like switching from fossil fuels to green energy or from petrol to EV cars, the rebates make sense as a way to make the tech palpable to early adopters. Otherwise, you would never be able to get the new tech out into the field to fix bugs and stress test it to see what the flaws are.

    As EVs become more common, the grid will adapt to handle the demand. This will take decades, as anyone who works with cars will tell you. The majority of the cars being charged at night will help handle the load, as at night the grid is under-utilized. And musk has already had success in australia with his battery grid system for storing and sending solar energy, california is now building a significantly bigger test site for the same tech. Such technology would make things like solar/wind much more useful.
     
    Reehahs likes this.
  5. toooooot

    toooooot TS Booster Posts: 107   +40

    "Personally I think PLUG IN EV's are a joke. If enough people had them, they would strain the already over burdened power grid"

    As long as everybody charges at night, it is a win win. It is energy which is not needed at all during the nights. So using it instead of gasoline is a great idea.
     
  6. DaveBG

    DaveBG TS Maniac Posts: 342   +116

    This is just the beginning. When GF3 in china starts operation it will pump those 200k cars in a few weeks.
     
  7. captaincranky

    captaincranky TechSpot Addict Posts: 13,658   +3,115

    Quote by @Polycount "As such, these incentives have a limit for each manufacturer. In Tesla's case, the company has officially sold well over 200,000 cars in the US, meaning the IRS' tax credit will be on its way out. While it's tough to say how heavily this will impact Tesla's bottom line, it's likely said impact won't be positive".

    And exactly what "bottom line" is that, I prithee tell me? Since the company lost 2,000,000,000, (2 billion with a "B"), in 2017, they'll be lucky if they can scrape together the money for another tank car full of red ink!

    Tesla's recent announcement of building a new factory in China ties into this nicely. Since Musk and the autoworkers can't, or won't, play nice together, and his tax credits are going to expire, China presents a whole new pool of investors, along with cheap steel, and most importantly, CHEAP LABOR!

    And I sincerely hope and pray,the US government taxes the living sh!t out of that pr!ck, when he tries to import them back into the US. (You know he will).
     
    Last edited: Jul 13, 2018
  8. netman

    netman TS Rookie Posts: 16   +7

    Is this for all electric cars sold in US or just Tesla?
     
  9. Polycount

    Polycount TS Guru Topic Starter Posts: 830   +187

    Just Tesla, as far as I'm aware. I believe the IRS' system applies to each company on an individual basis.
     
    DaveBG likes this.

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