Tesla IRA subsidies

I think the incentive will be more profit for most of the manufacturers.

 

Selling more cars in theory means each manufacturer will be paying more taxes and maybe hiring more employees to pay more taxes. Tesla et al, often shovels their money back into charging infrastructure, R&D, etc so the biz pays little tax tho.
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OK. So something wierd is going on as of 4-19-2023 when you order a New Tesla. I have been playing around with the build your own tool on the Tesla site and saving screen shots of the final cost for almost 8 months now. The price is now all OVER the place. I speced out a MY for my wife and it used to cost $61,500. Today the same car is $56,600. Wth! I love the savings but If Had bought it 4 months ago I would have paid the $4,900 higher price. Its like Amazon...price changes hourly....UGH so frustrating. I wonder WHY? Tax return advantage? COmpeting with the in stock EQB which STarts at $49K? Any ideas? wait time is the same ......

 

i think they lowered the price to qualify for the tax rebate.

it doesn't bother me that prices change, because i think that's true of all cars. they just never sold at msrp, so you had no idea what people were paying

 

A white Model 3 RWD with 18 in wheels and FSD is just under the $55k MSRP limit. The Tesla site does add the mobile charger to the car price, but I think the IRS will add it to that limit.

"MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees." - Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

These days its possible for find average and median prices paid for a model.

They do. A reliable incentive means the manufacturer could increase the MSRP, or simply forgo their normal incentives. The government funding the deal means they don't have to, and that leads to higher profit for them.

 

I hope everyone's IRA does well, including mine.

However, as far as Government subsidiaries don't forget the entity paying these subsidies out is -$31,459,098,952,963 in debt to the red. And home to runaway inflation.

National Debt Clock: What Is the National Debt Right Now? (pgpf.org)

These are really better termed a reduction in tax liabilities to an entity who is on track to - raise taxes - the government only gets money by taking it from someone and redistributing it. Industries and companies don't pay taxes - they pass them on to their customer who buy their products.


I worry about my IRA, in our area, we heard a typical socialist on our local TV say that your money is not really yours - it's the governments and they should be able to take it and use it or redistribute it how they see fit- okay?

 

The direct gain is 100% customer.
However, the incentives do indirectly benefit Tesla by making the cars available to more people.

If Tesla were raising prices, I could see an argument that Tesla is partially profiting from the incentives. Or if they had dealers who were selling the cars for more than they would without the incentives.

 

750k EVs were sold in the US in 2022. If that doubles in 2023, and every one sold was eligible for the full tax credit, it would cost $11,250,000,000, or 0.03576% of the debt. If the deficit is a true concern, there are plenty of other areas that can be trimmed form an actual impact.

 

it's only the spending of the 'other' party that the 'other' party is concerned about