Tesla discounts Model S by $30,000 and Model X by $41,000 to gain EV tax credits

[Zorro]

Source: Bloomberg via Yahoo Finance

Tesla Inc.’s latest discounts will newly qualify one of its models for federal subsidies that Elon Musk said years ago the U.S. should scrap.

By dropping the starting price of the Model X to $79,990 — a $41,000 reduction from the start of the year — Tesla made the sport utility vehicle eligible for the federal tax credits revamped by the Inflation Reduction Act, President Joe Biden’s signature climate bill

Musk in December 2021 called for the Biden administration to get rid of the incentives, citing concerns about government spending and the deficit. At that time, Teslas were no longer eligible for the tax credits because the company had already reached a limit that triggered a gradual phase-out of the benefit.

“I’m literally saying, get rid of all subsidies,” the chief executive officer said during a Wall Street Journal conference. When asked if his opposition had anything to do with the effect this would have on competitors, Musk replied: “Maybe they need it, I don’t know.”

With the Inflation Reduction Act, Biden discarded a cap on how many vehicles each automaker could sell before the credits began to wind down. The administration also set maximum retail prices at $80,000 for electric SUVs, vans and pickups, and $55,000 for cars.

Read more: https://finance.yahoo.com/news/tesla-discounts-model-30-000-142300452.html

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This is a pretty drastic price cut.

[MichMan]

1. Just made sure all current owners values dropped significantly

How would you like to have just bought one this summer?

[tonekat]

22. Just more of his blinding genius /S

He's playing 3D chess!

[TheBlackAdder]

40. SUX to be an August 2023 buyer.

[WhiteTara]

2. I wonder how much more excess

profits still remain?

[MichMan]

3. How much profit is considered excess?

[WhiteTara]

8. Musk decided there

was $30-40,000 excess in each of those vehicles and he's not adverse to making lots of money (except when it comes to Twitter.)

[Gore1FL]

32. Or it was decided selling older vehicals at a loss and maximizing the tax credit made sense.

At some point old inventory costs money even if it's only for the storage space. This seems more like an attempt to minimize loss of the remaining discontinued models and move them out of inventory.

[4lbs]

4. I'm wondering if all those people that bought those things at the much higher price are

going to return them, and then re-purchase at the lower price.
They might even just allow them to be repo'ed and then purchase a newer model at a cheaper price.

[MichMan]

12. You can't return vehicles

If they are repossessed, you still owe the balance between the amount you still owe and what they sell for at auction. You don't get to just walk away and call it even.

[PortTack]

5. It's a drastic price cut!

If buyers were that enamored, why discount them that much…just asking.

https://themotordigest.com/9-reasons-why-you-shouldnt-buy-a-tesla/

[former9thward]

23. Ford and GM have done the same thing.

Only difference is that Tesla is making money and Ford/GM are losing billions on their EV divisions. It seems no one is enamored to buy EVs since tax credits are needed to lure people to buy them.

[bhikkhu]

44. I'd buy an EV, just not for $100,000

There's really no reason for them to be that expensive.

In the meantime I drive a Prius that I got for $5,500, which still runs perfect and gets over 50 mpg...

[SleeplessinSoCal]

6. I can't find anywhere that Tesla Model X sold for $120,000

In 2023

[Shermann]

26. That does appear to be inflated for whatever reason, even the Plaid wasn't that high

This article may be more accurate:

https://insideevs.com/news/684663/tesla-model-s-model-x-price-cuts-standard-range-removal/

[marybourg]

41. Yes, that sounds right and makes more sense.

[Grins]

7. "Soshilism!!!" NM

[doc03]

9. I think about buying one when they have a 500 mile range, there are

adequate charging stations available and they cost under $35000. I can't figure why anyone would buy one when a battery costs
$30000.

[PoindexterOglethorpe]

24. And recharging takes ten minutes or less.

Last year I made a trip with a friend who drives a Tesla, and I found the stopping to recharge to be quite annoying. Didn't tell him that, as he was driving, but still.

I drive a Honda Fit, and since I don't work, don't go a lot of places, I get gas once every three or four weeks. And even with the current high price of gas, it would take a fuck of a lot of refills to justify paying $80k for a car. Even $30k.

Here's my formula for never having a car payment after your first car: Save money ahead of time. Buy a car within your budget. Have a two, or at the most three year payment. When the car is paid off, keep driving and bank the car payment. For at least a year. Meanwhile, you should have continued to save other money. When you replace the first car, buy one that costs no more than the money you've saved. Rinse and repeat.

Most people don't really buy a car, they buy a car payment. They get the best, newest, fanciest car they possibly can. And by the time it's paid off they're desperate for a replacement, so they repeat the process.

My very first car, I needed to borrow money from my credit union for. After that, every other car was paid for in cash. It's really not hard.

Oh, and it helps not to own a TV and never see new car ads. That may be the most important thing.

[doc03]

29. I do about the same, only had two car loans in my life. My first I got a $300 cash loan

my dad co-signed for to buy a used 1961 Corvair. I bought a new truck back in the 80's with a
zero percent loan. I have a 2006 Toyota Tacoma, I bought new and a 2020 Honda CRV. I will probably
buy a new CRV in two years on the RMDs I am required to take. I haul a couple loads of mulch a year
with the Tacoma and drive it once in a while to lubricate things and keep the battery charged. It still
runs great and it was paid for 18 years ago.

[erronis]

49. Wow - a 1961 Corvair! The first car I drove was a 1963 - unsafe at the speeds I drove.

Just learning to drive and didn't realize that the front end could lift off the pavement.

Also, these needed an add-on gasoline heater for the cabin (just like VWs).

[LiberalFighter]

10. I wouldn't mind getting an EV car but...

1) Not at that price.
2) Not his.

[byronius]

11. I was on the list until Musk went full Nazi.

Everyone in my liberal town has jettisoned theirs. I used to see six or seven on my dogwalks; now I see one. And it's the Crazy Right Winger.

What a failure. What a pathetic, sad, Fail.

[LiberalFighter]

14. I would think crazy right wingers would be hugging their gas vehicles for life.

[oldsoftie]

15. I drove a new Prius as a rental. Its been redesigned & looks good! I avg 60mpg

Drove from Milwaukee to Green Bay; around GB a few days & back to Milwaukee. Filled up at the airport. SIX gallons.

[padah513]

18. Wow!!!!

[LiberalFighter]

19. I'm in Fort Wayne but was born in Wisconsin

From Baraboo, to Rock Springs, to Kewaunee, to Janesville, to Whitewater, and then Fort Wayne Indiana.

[SleeplessinSoCal]

46. How is it redesigned?

Did that raise the MPG? Most curious as we drive a 2007 Prius that is beginning to show its age. We have 117,000 miles on it. We don't get the milage we once did. Though its still good at around 44 highways 35 city. The back seat fan comes on though after about an hour of highway driving.

So curious about the redesign.

[oldsoftie]

48. I just mean style-wise. I'm not familiar with the system;

So I've got NO experience with previous models. It looks a lot sportier than earlier models.
But now after looking up a link for you to see the "new look", I see they've added a plug in version too. That will go about 45mi on just electric. Also a 2.0 liter 4 cylinder.
https://www.caranddriver.com/news/a41974283/2023-toyota-prius-preview/

[SleeplessinSoCal]

53. About two years ago we sold our '91 Honda CRX.

Last edited Sun Sep 3, 2023, 03:50 PM - Edit history (1)

Very desirable car for lovers of speed. Somebody here on DU suggested converting it to electric. We opted to just keep the Prius. Money is aways an issue. But I also try hard t be environmentally responsible.

I'll research conversion of old Prius to electric....

?si=73pkkxt2WzMc9anV

[moniss]

13. Prroof of how bad he ripped off the previous

buyers.

[Gore1FL]

33. It's an old-model liquidation sale to minimize loss on discontinued vehicals. nt

[kimbutgar]

16. He has turned off so many people in SF that the Tesla lot is full of unsold cars

Plus people are discovering you have to only get cars repaired at high prices at their service centers and AAA can’t replace a flat tire.

[LisaM]

27. Wait, let's go back to this flat tire thing.

I don't own a Tesla and never intend to, but what is this about the flat tire?

I have already heard horror stories about the repair aspect. Among the many things I didn't like about them to begin with was the way they didn't want to sell through traditional dealers, and that turned out to be a good instinct because of this service center bull puckey they have. Again, it's not in my price range and I couldn't get one if I wanted to, but everything about the company was always off putting to me.

[oldsoftie]

17. Just shows the ridiculous profit margins on new cars. Trucks are worse.

Back in '18 GM was making about 17,000 per unit

[republianmushroom]

20. Could be ?

As Hurricane Idalia caused flooding, some electric vehicles exposed to saltwater caught fire

Read more: https://www.cbsnews.com/news/hurricane-idalia-electric-car-caught-fire-tesla/


https://www.democraticunderground.com/10143124213

[dembotoz]

21. well their is upside down in a car loan and now really really really upside down on a car loan

so what is the thing worth?
what somebody will pay.
hmmmmmmmmmmmmmmmm

[PoindexterOglethorpe]

25. Ah, yes, upside down on a car loan.

I've more than once heard the sad story of someone upside down on the car loan, who got into an accident, car was totalled and surprise! surprise! Insurance only pays for the value of the car, not what is owed on the car loan.

People make really stupid financial decisions.

[ashredux]

28. Well, from this, it's obvious the cars were extremely over priced to start with

[MichMan]

35. Not apparently to the people that bought them

They agreed to pay what they were asking and probably were quite satisfied with their purchase

[ashredux]

36. Well, how would you feel if you bought 6 months ago, and now they drop the price 40k

All I can say is, I would not feel satisfied, I would be pissed

[MichMan]

38. So,until yesterday, you would have been perfectly satisfied & thought it was worth the asking price

No one is forced to buy a $100k Tesla. Whomever buys one must have believed it was worth the asking price at the time or they wouldn't have bought it in the first place.

[ashredux]

39. I guess we're not communicating. If I bought something at X, ....

And a few months later, it was drastically reduced by 40 to 50% of what I paid, I would feel like I got ripped off. Regardless of how I felt when I bought it, I feel I was fooled, and I would feel like a fool to pay so much more than apparently it was worth.

I contend, most people would feel that way

[erronis]

51. I like the way you think - pragmatically.

(Someone recently called me pragmatic which is the best compliment I've had for years. So now I'll spread it onward.)

[SleeplessinSoCal]

47. It didn't drop that much. Factual reporting shows less.

https://insideevs.com/news/684663/tesla-model-s-model-x-price-cuts-standard-range-removal/

Get ready for a new and improved overpriced Tesla:

https://www.motortrend.com/news/tesla-slashes-prices-model-3-updated-replacement/

My belief is that the first Teslas that repeatedly won car of the year were designed as luxury cars to compete in that market. That's when they were built to order.

"In February 2004, via a $6.5 million investment, Elon Musk became the company's largest shareholder.

He became CEO in 2008. Tesla's announced mission is to create products which help “accelerate the world’s transition to sustainable energy.”

But interestingly "Tesla was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. The company's name is a tribute to inventor and electrical engineer Nikola Tesla."

He didn't even come up with the name.

Greed completely took over after it started mass production...

"Tesla's 2022 deliveries were around 1.31 million vehicles, a 40% increase over the previous year, and cumulative sales totaled 4 million cars as of April 2023."

Quotes from Wikipedia.

[Alexander Of Assyria]

37. It's great news for all prospective EV buyers, tens of million in the near future!

I celebrate the affordability that will be across the manufacturing spectrum…sooner than anyone thought the subsidies will not be needed!! But it’s Musk, so can’t do any good at all!

The vision of Musk is clearly to end the age of fossil fuel transportation, affordability is the driving force, the key to EVs for everyone!


It’s not a question of previously overpriced…demand was already outstripping supply by a long shot… it’s a question of supply and demand in the long term…ton of supply coming on steam in the next couple of years…long term thinking is foreign to American capitalism…until folks like musk came along and did the long range planning the federal government is powerless to do…crisis after crisis…no budget in a decade…

Isn’t that ok?

[MistakenLamb]

30. rather buy from an auto maker whom i don't have to question their loyalty to America

and don’t kill people on autopilot

[erronis]

52. Good luck finding an auto maker that isn't in the business for profit.

Agree that some seem to be more focused on safety issues. Consumer Reports has been a good resource, altho they don't rate the manufacturers on loyalty to xyz (AFAIK).

[Historic NY]

31. Its worse devaluing off the lot than a normal car..

Imagine those with used ones now trying to unload them. My 2021 Tahoe with 12k will fetch about 4000-5000 less than the original sticker according to Carfax. I ordered it back in the pandemic with a 4k GM discount, it took 5 months to be delivered.

[Gore1FL]

34. They want to clear out the cars they aren't making anymore for new models that sell.

The outrage on this thread is like being mad at outlet stores.

[moniss]

42. It's almost like kiting

checks at this point.

[Aussie105]

43. Is Elon having trouble keeping sales up and the factories humming?

Inquiring minds want to know.

[ForgoTheConsequence]

45. Poor build quality.

Their consumer satisfaction is taking a nosedive. Mismatched paint on ill-fitting body panels. Buy union.

[sarcasmo]

54. E-Loon loves his Government money.