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Tesla makes a big change to reflect new IRS EV tax credit rules

The new rules allow the order to be placed by September 30, and delivery can occur afterward. Leasing does not qualify for this offer, as delivery must take place before September 30 to receive the tax credit.

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(Credit: Tesla)

Tesla has made a big change in terms of its ordering process to reflect the new rules regarding the $7,500 EV tax credit, which the IRS adjusted the rules to just a few weeks ago.

The EV tax credit is set to expire on September 30, bringing an end to a program that has been widely advantageous to consumers and automakers, helping to incentivize the purchase of a sustainable powertrain for those who qualify.

However, the rules and language regarding the tax credit were adjusted slightly a few weeks ago. Previously, the tax credit was only available to those who took delivery of their vehicle by September 30, something Tesla was sure to be transparent about on its website:

Tesla warns consumers of huge, time-sensitive change coming soon

In late August, the IRS slightly adjusted the rules to reflect that those who are purchasing their EV outright do not need to take delivery by September 30. Instead, those consumers now need to enter a written binding contract and have a “nominal” down payment on the car to qualify.

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The agency said:

“For purposes of sections 25E, 30D, and 45W, a vehicle is ‘acquired’ as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.”

This adjustment was greatly appreciated by many, as Tesla had previously suggested ordering and purchasing from inventory instead of a custom build. This led some consumers to settle for a trim, color, or features that they did not necessarily want as their first choice.

The new rules allow the order to be placed by September 30, and delivery can occur afterward. Leasing does not qualify for this offer, as delivery must take place before September 30 to receive the tax credit.

For outright purchases, however, customers can place an order until September 30 and still receive the tax credit, even though delivery could occur after that date.

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Tesla has now made a big adjustment to the language on its website to reflect this:

This significant change reflects the IRS rules, which were previously confusing to many, as the meaning of a written agreement and nominal down payment still left many customers uncertain about whether they would be able to take delivery after September 30 and still receive the tax credit.

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Tesla employees are also reaching out to potential customers, reiterating this point:

The move has potentially monumental implications for Tesla, as many took delivery over the past three months in preparation for the phase-out of the tax credit.

However, the deliveries that will occur after Q3, thanks to this adjustment, could benefit Tesla’s Q4 performance as well.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Cybercab lead engineer shares optimistic update

The Tesla engineer shared the update following the one-year anniversary of We, Robot.

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(Credit: Tesla North America/X)

The principal mechanical design engineer of the Tesla Robotaxi has provided a rather exciting update about the upcoming all-electric autonomous two-seater. The Tesla engineer shared the update following the one-year anniversary of We, Robot, when Elon Musk took the wraps off the Cybercab and the Robovan. 

Cybercab, one year in

Tesla has done an excellent job keeping the details of the Cybercab under wraps since its unveiling last year. Apart from brief showcases at Tesla stores and sightings at Gigafactory Texas, the Cybercab’s development has been quite a mystery. In recent weeks, however, drone footage from Giga Texas showed the Cybercab being worked on at the factory’s crash testing facility. 

One year is a substantial amount of time, and considering Tesla’s reputation for consistently improving its vehicles well after they are unveiled, developed, and released, expectations were high that the company had also been busy refining the Robotaxi over the past year. This was confirmed by Tesla Cybercab lead engineer Eric E., who noted in a reply on X that the autonomous two-seater has made a lot of progress in the past year.

“It’s sooo good, and way better than it was a year ago as well,” the Tesla engineer wrote in a post on X. 

Cybercab expectations

Elon Musk has been very optimistic about the Cybercab, with the CEO previously stating that the vehicle’s production line would likely resemble a high-speed consumer electronics line instead of a conventional automotive assembly line. Other Tesla executives such as VP of Vehicle Engineering Lars Moravy and Senior Design Executive Franz von Holzhausen have also shared in interviews that the company is targeting a battery pack under 50 kWh for the vehicle, which should still be able to provide almost 300 miles of real-world range.

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Despite its small size, the Cybercab is still very spacious, offering probably the biggest legroom among the company’s current vehicles. Its trunk is also very large enough to fit an enormous amount of cargo. Musk has also mentioned that Tesla should ultimately be able to produce a Cybercab every five seconds.  

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Elon Musk

Elon Musk may rethink his charity pledge after Peter Thiel’s Bill Gates warning: report

Musk reportedly took Thiel’s suggestion seriously.

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Credit: Tesla

Reports have emerged suggesting that Elon Musk might be rethinking his promise to give away most of his fortune. This was reportedly due to his longtime friend Peter Thiel, who told the world’s richest man to withdraw from the Giving Pledge because his wealth could end up “in left-wing nonprofits chosen by Bill Gates.”

Thiel shared the story during a private lecture series in San Francisco in September. As noted in a Reuters report, Musk reportedly took Thiel’s suggestion seriously.

Thiel warned Musk about his fortune going to Gates-backed causes

Thiel said he even ran the math to make his point. By checking actuarial tables, he calculated that if Musk died within a year, his pledge would effectively direct $1.4 billion to Bill Gates. Musk reportedly said, “What am I supposed to do, give it to my children? You know, it would be much worse to give it to Bill Gates.”

Musk signed on to the Giving Pledge in 2012, two years after it was co-founded by Gates and Warren Buffett, as noted in a Daily Beast report. The initiative asks billionaires to donate the majority of their wealth to charitable causes either during their lifetime or through their wills. Gates’ foundation has focused on global health, education, and gender equality, areas Thiel has described as “left-leaning.”

Spokespeople for Thiel, Musk, and Gates have not issued a comment about the matter.

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Elon Musk and Bill Gates

Thiel, who co-founded PayPal with Musk in 2000 before launching Palantir and becoming Facebook’s first outside investor, has maintained close ties to the Tesla and SpaceX CEO over the years. Musk, for his part, continues to donate through the Musk Foundation, which funds education, clean energy, and scientific research.

Elon Musk and Bill Gates’ relationship has taken a nosedive in recent years, especially amidst news that the Microsoft co-founder had taken a short bet against Tesla. Musk seemed to have taken Gates’ Tesla short personally, considering that the EV maker is fighting for sustainability, a cause that the Microsoft co-founder has supported. 

Gates has also been skeptical of Tesla’s projects such as the Tesla Semi, which Gates noted was not feasible due to the limitations of battery technology. More recently, the two billionaires butted heads when Gates claimed that the cuts initiated by Musk’s DOGE initiative would cost 2 million lives. In a post on X, Musk responded by stating that “Gates is a huge liar.”

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Tesla axed one of the Model Y’s best features in ‘Standard’ trims: here’s why

Lars Moravy explains why Tesla chose to go with a glass roof in the new Standard trims, despite it not being visible.

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Credit: Tesla

Tesla chose to implement a glass roof on the new Model Y ‘Standard’, despite the fact that you won’t be able to see it from the inside.

In the new Model Y ‘Standard’ configuration, one of the biggest changes is the lack of a glass roof, which is one of the more unique features Tesla offers.

How Tesla’s Standard models will help deliveries despite price disappointment

The entire roof of the Model Y’s ‘Premium’ and Performance trims is glass, giving everyone in the car an astounding view of the sky.

However, Tesla chose to cover this up in the new ‘Standard’ trim level. Here’s a look at it:

Credit: ItsKimJava | X

Despite it not being visible from the inside, the roof is still made of glass. It is only visible from the outside. Even if you removed the headliner in the Model Y ‘Standard,’ you would not be able to see the outside, because the glass is opaque:

Tesla’s Vice President of Powertrain, Lars Moravy, commented on the use of glass in the Premium models and how it differs from the glass in the Standard trims:

“All glass is NOT created equal. Remember, the Model Y Premium glass is laminated with silver IR reflective coatings to make it super comfy and reject solar load… the standard is not… plus LOTS of people wanted a closed headliner, always trying to listen (and improve road noise at the same time).”

The decision to cover up the glass while still using it was an efficiency choice. Moravy said Tesla chose to keep the glass for the new Standard models due to “cost, supply chain, and manufacturing efficiency.”

Tesla launched the Standard models on Tuesday. The cars were effectively a counter to the loss of the $7,500 EV tax credit.

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