Lifestyle
Model 3 Buyers May Miss Out On Federal Tax Credits
By the time Tesla starts building its entry level Model 3 cars, the federal tax credit may have long since expired.
Model 3 buyers may not be able to take advantage of the $7,500 federal tax credit for electric vehicles, for two reasons. First, the federal credit under Internal Revenue Code Section 30D (IRC 30D) begins to decrease once a manufacturer reaches 200,000 qualifying EV sales in the US.
Second, the $35,000 price tag of the Model 3 (before incentives) will appeal to mass market buyers who may not necessarily fall into the same high income bracket as those that purchase the Model S and Model X. As Evan Niu of The Motley Fool explains, “The $7,500 credit can only be applied if the customer has a tax liability of $7,500 or more, and any unused portion is not refundable and can not be carried forward”. This means any person taking home $50,000 a year or less may not have a large enough tax liability to qualify for the full $7,500 federal tax credit.
Let’s take a closer look at both of these factors.
The Incredible Shrinking Tax Credit
Congress, in its infinite wisdom, enacted the federal tax credit to give manufacturers an incentive to sell electric cars. It is a pump priming strategy that was meant to have a relatively short shelf life at 200,000 vehicles sold.
Tesla does not break down its sales numbers by country, but in its most recent letter to shareholders it said it sold 42,000 Model S sedans in America in 2014 and 2015. Elon Musk says the company will deliver between 80,000 and 90,000 cars this year. Assuming half of those go to US customers and adding in estimated sales in 2012 and 2013, Tesla could approach that 200,000 mark in calendar year 2018.
Pictured above: Tesla Store grand opening in Hingham, MA via Rob M
After that, the EV incentive program enters into a “phase out period” at which point the tax credits are cut to 50% and 25% of the original $7,500 credit over the next 6 to 12 months, respectively, until the plan is eventually phased out in its entirety. Based on Tesla’s sales figures and projected growth rate, analysts expect that to happen for Tesla in 2018.
IRC 30D states:
The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”).
Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period.
The critical factor in determining whether Model 3 buyers will be able to take advantage of the full tax credit will be timing. For every month the Model 3 gets delayed, more Model S and Model X cars will be sold, getting the company closer to that 200,000 phase out period.
The Demographics of Model 3 Buyers
It seems fairly obvious that someone looking for a $35,000 Model 3 will be in a different socio-economic status than a person looking to purchase a Model S P90D. The way the federal tax credit is set up, if a person only owes $5,000 to the IRS for the year in which a qualifying car is purchased, the credit is limited to $5,000. Any excess is lost. The taxpayer cannot carry over any unused portion to a subsequent tax year.
Other Considerations
Several other factors will make that $35,000 Model 3 a rare bird indeed. Tesla has already indicated it will build the cars with the most options first. This is normal procedure for the company. For instance, manufacturing on the Founders Edition and Signature Series Model X began first followed by P90D production cars. It may be a while yet before any entry level 70D Model X cars get built.
Similarly, the first Model 3 cars will likely have the largest battery available (70 kWh? 90 kWh?). If dual motors are offered, the first cars will have those as well. Panoramic roof, upgraded interiors, premium sound systems, Autopilot activation, and a host of other extra cost options will push many cars close to $60,000. Even with the full federal tax credit, a fully loaded Model 3 will cost far more than $35,000.
It could easily be a year or more after the Model 3 is introduced before any entry level $35,000 Model 3 is available. By then, the federal tax credit will likely be long since used up.
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Lifestyle
Tesla Cybertruck takes a bump from epic failing Dodge Charger
The Cybertruck seemed unharmed by the charging Charger.
There comes a time in a driver’s life when one is faced with one’s limitations. For the driver of a Dodge Charger, this time came when he lost control and crashed into a Tesla Cybertruck–an absolute epic fail.
A video of the rather unfortunate incident was shared on the r/TeslaLounge subreddit.
Charging Charger Fails
As could be seen in the video, which was posted on the subreddit by Model Y owner u/Hammer_of_something, a group of teens in a Dodge Charger decided to do some burnouts at a Tesla Supercharger. Unfortunately, the driver of the Charger failed in his burnout or donut attempt, resulting in the mopar sedan going over a curb and bumping a charging Cybertruck.
Ironically, the Dodge Charger seemed to have been parked at a Supercharger stall before its driver decided to perform the failed stunt. This suggests that the vehicle was likely ICE-ing a charging stall before it had its epic fail moment. Amusingly enough, the subreddit member noted that the Cybertruck did not seem like it took any damage at all despite its bump. The Charger, however, seemed like it ran into some trouble after crashing into the truck.
Alleged Aftermath
As per the the r/TeslaLounge subreddit member, the Cybertruck owner came rushing out to his vehicle after the Dodge Charger crashed into it. The Model Y owner then sent over the full video of the incident, which clearly showed the Charger attempting a burnout, failing, and bumping into the Cybertruck. The Cybertruck owner likely appreciated the video, in part because it showed the driver of the Dodge Charger absolutely freaking out after the incident.
The Cybertruck is not an impregnable vehicle, but it can take bumps pretty well thanks to its thick stainless steel body. Based on this video, it appears that the Cybertruck can even take bumps from a charging Charger, all while chilling and charging at a Supercharger. As for the teens in the Dodge, they likely had to provide a long explanation to authorities after the incident, since the cops were called to the location.
Lifestyle
Anti-Elon Musk group crushes Tesla Model 3 with Sherman tank–with unexpected results
Ironically enough, the group’s video ended up highlighting something very positive for Tesla.
Anti-Elon Musk protesters and critics tend to show their disdain for the CEO in various ways, but a recent video from political action group Led By Donkeys definitely takes the cake when it comes to creativity.
Ironially enough, the group’s video also ended up highlighting something very positive for Tesla.
Tank vs. Tesla
In its video, Led By Donkeys featured Ken Turner, a 98-year-old veteran who served in the British army during World War II. The veteran stated that Elon Musk, the richest man in the world, is “using his immense power to support the far-right in Europe, and his money comes from Tesla cars.”
He also noted that he had a message for the Tesla CEO: “We’ve crushed fascism before and we’ll crush it again.” To emphasize his point, the veteran proceeded to drive a Sherman tank over a blue Tesla Model 3 sedan, which, of course, had a plate that read “Fascism.”
The heavy tank crushed the Model 3’s glass roof and windows, much to the delight of Led By Donkeys’ commenters on its official YouTube channel. But at the end of it all, the aftermath of the anti-Elon Musk demonstration ended up showcasing something positive for the electric vehicle maker.
Tesla Model 3 Tanks the Tank?
As could be seen from the wreckage of the Tesla Model 3 after its Sherman encounter, only the glass roof and windows of the all-electric sedan were crushed. Looking at the wreckage of the Model 3, it seemed like its doors could still be opened, and everything on its lower section looked intact.
Considering that a standard M4 Sherman weighs about 66,800 to 84,000 pounds, the Model 3 actually weathered the tank’s assault really well. Granted, the vehicle’s suspension height before the political action group’s demonstration suggests that the Model 3’s high voltage battery had been removed beforehand. But even if it hadn’t been taken off, it seemed like the vehicle’s battery would have survived the heavy ordeal without much incident.
This was highlighted in comments from users on social media platform X, many of whom noted that a person in the Model 3 could very well have survived the ordeal with the Sherman. And that, ultimately, just speaks to the safety of Tesla’s vehicles. There is a reason why Teslas consistently rank among the safest cars on the road, after all.
Lifestyle
Tesla Model 3 driver is using FSD to travel to Mt. Everest Base Camp
The ambitious, nearly 4,000-kilometer (2,485-mile) Tesla FSD journey is being livestreamed on Chinese social media.
Count on Tesla drivers in China to push Full Self Driving (FSD) as far as it could go. As could be seen in videos posted on Chinese social media, a brave Model 3 owner is currently going on an epic journey from Henan Province to the base camp of Mt. Everest on FSD.
Recent posts from the Model 3 driver suggest that the ambitious destination may be within reach.
Epic FSD Journey
As noted by Tesla owner-enthusiast Aaron Li, the journey from Henan Province to the base camp of Mt. Everest spans almost 4,000 kilometers (2,485 miles). The journey itself is epic, with stunning vistas and roads that require some drivers to bring oxygen canisters with them. The fact that it is being done using FSD makes it extra impressive.
Based on the videos that have been recently shared, the Model 3 running FSD seems to be nearing the Everest Base Camp. There seems to be a good chance that the Tesla Model 3 may reach its destination this Friday.
Previous Everest Trips
This is not the first time that a Tesla has driven to Mt. Everest’s base camp. That would be a Model 3 that was driven in September 2020. That vehicle, which went on a long 5,500 km (3,400-mile) journey, was manually driven to its destination.
In April 2021, Tesla China announced that it has completed the buildout of 11 Supercharger stations in the picturesque route from Chengdu to Tingri. This route would allow drivers to reach the base camp of Mt. Everest. Sure enough, in July 2022, Tesla China shared a video of two Teslas—a Model X and Model Y—reaching the Everest base camp without any issues. Numerous other Tesla drivers have since taken on the long, picturesque journey.
Check out this Tesla Model Y’s journey to the Mt. Everest base camp in the video below.
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