Tesla apparently expects its cars to qualify for the whole of the new EV federal subsidy on January 1, so it is now doubling the credit it was giving to customers who buy its EVs for December delivery. The Treasury postponed its subsidy requirement guidelines for March, and now all made-in-US EVs will reportedly get the full subsidy amount in Q1.
Tesla has doubled the US$3,750 credit it gave towards the purchase of a new car for December delivery, immediately reacting to the Treasury Department announcement that it is putting off the release of its official new EV tax credit requirement guidelines for March 2023. This most likely means that electric cars which are sold between January, when the federal subsidy program kicks in officially, and March of next year, will qualify for the full US$7,500 subsidy amount, regardless of whether their batteries fully comply with the raw material and component sourcing tax credit requirements.
Thus, the main reason for Tesla’s initial US$3,750 credit incentive – to offset the portion of the subsidy it thought its EVs qualify for so that buyers don’t wait for January to pull the trigger – became moot, so it had to double the price discount incentive to the full US$7,500 subsidy amount it now knows its cars will be eligible for next month. Not only that, but the new incentive for 10,000 free Supercharger miles stays as well, for a whopping up to US$9,000 discount on an inventory vehicle for December delivery, similar to what Tesla did for its cars in China, albeit in the form of a direct price cut.
The Treasury was supposed to give its new EV tax credit application guidelines for the application of the Inflation Reduction Act by year’s end, but since there was a lot of backlash against the structure of the federal incentives, including from European Union allies who argued that they constitute subsidies the WTO may rule illegal, it is postponing the decision to accommodate everyone’s concerns.
In the meantime, cars like the Chevy Bolt, one of the cheapest electric vehicles in the US, will enjoy breathtaking sub-US$20,000 prices as the full subsidy amount applies to the model, since GM will again be eligible for the tax credit when the New Year is rung in. The Tesla Model Y as well as some Model 3 trims will also qualify for Uncle Sam’s largesse, so the first quarter of next year might witness a boom in electric vehicle sales in the US.
Daniel Zlatev – Tech Writer – 521 articles published on Notebookcheck since 2021
Wooed by tech since the industrial espionage of Apple computers and the times of pixelized Nintendos, Daniel went and opened a gaming club when personal computers and consoles were still an expensive rarity. Nowadays, fascination is not with specs and speed but rather the lifestyle that computers in our pocket, house, and car have shoehorned us in, from the infinite scroll and the privacy hazards to authenticating every bit and move of our existence.
Daniel Zlatev, 2022-12-22 (Update: 2022-12-22)