By Kevin Armstrong
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced measures that could benefit Tesla buyers. Consumers will soon enjoy the benefits of the federal tax credits at the point of sale for new and previously owned clean vehicles, a move that aligns perfectly with Tesla’s mission to accelerate the world’s transition to sustainable energy.
Immediate Rebates on New and Used EVs
Starting January 1, 2024, under the Inflation Reduction Act, buyers of new clean vehicles like Teslas can transfer a credit of up to $7,500 directly to car dealers. For those eyeing previously owned clean vehicles, a credit of up to $4,000 can be transferred. This system effectively reduces the vehicle’s purchase price instantly. No longer will buyers have to wait for their annual tax return to see the benefits; instead, they can enjoy an immediate reduction in their Tesla’s price.
This initiative is not just a win for consumers but also for dealers. The IRS is launching a new website, IRS Energy Credits Online, where dealers must register to facilitate these clean energy tax credits. Starting in January, dealers registered on this platform can submit information on clean vehicle sales and quickly receive payments for transferred credits, often within a 72-hour window.
Ensuring Transparency and Authenticity
Buyers transferring the credit will see the purchase price of their Tesla reduced or receive a cash amount equivalent to the available credit for the eligible vehicle. Dealers must provide clear disclosures during the credit transfer process, ensuring buyers fully know the credit’s amount and eligibility.
In addition to ensuring clarity for consumers, the guidance also emphasizes safeguards against fraudulent practices. Verification processes will be in place to ensure that only legitimate, tax-compliant dealers benefit from these advance payments and that only qualifying vehicles receive the credit.
Tax Implications Simplified
The newly proposed rules also address these transactions’ federal income tax implications. For Tesla, credit transfers and advance payments won’t significantly impact their tax liability. And for buyers, payments made by dealers, whether as cash or towards the vehicle’s down payment, won’t be considered part of their gross income.
The Inflation Reduction Act paves the way for more affordable access to clean vehicles. After a confusing start to these credits, it appears the IRS is now responding to consumer and market needs. This move is poised to further propel Tesla’s already skyrocketing popularity, making sustainable driving more accessible.
By Kevin Armstrong
Tesla has revamped its leasing program to align with the swiftly changing electric vehicle landscape. Historically, consumers primarily purchased EVs outright, but the tide is turning. By June 2023, an impressive 22% of new EVs on the road were leased, showing a significant jump from 13% in June 2022. This shift highlights the growing allure of flexible ownership, particularly in the evolving EV market.
Year-End Incentives and Performance Targets
Tesla’s recent overhaul of its leasing options seems tailored to cater to this rising interest in leasing. This strategic move taps into current market dynamics and positions Tesla to bolster its year-end performance.
The company’s communication about the potential reduction of the $7,500 tax credit for the Model 3 to $3,750 by the end of the year could spur many to finalize their purchase or leasing decisions, aiding Tesla’s Q4 figures — especially after the Q3 hiccups.
Making Tesla EVs More Accessible: The Revamped Lease Prices
For consumers on the fence about transitioning to an EV, Tesla’s enticing lease rates could tip the scales:
Tesla Model 3 Lease
- Model 3 Rear Wheel Drive: A drop from $419 to a tempting $329/month.
- Model 3 Long Range: Now at $439/month, down from $509.
- Model 3 Performance: An attractive $529/month reduction from $609.
Tesla Model Y Lease
- Model Y Rear Wheel Drive: A slash from $499 to a competitive $399/month.
- Model Y Long Range: A decrease from $549 to $469/month.
- Model Y Performance: A revised rate of $539/month, down from $629.
These attractive prices are for a 36-month lease term, covering a yearly distance of up to 10,000 miles.
Influence on the Broader EV Marketplace
Tesla’s dynamic pricing and leasing strategies, while aimed at broadening its consumer base, are also poised to impact the larger EV market. The EV leasing trend is gaining traction; other industry players are already experimenting with innovative solutions. For instance, Hyundai introduced a month-to-month EV “subscription” and offerings from startups like Autonomy, which provide monthly subscription models for a diverse range of EVs.
Tesla’s refreshed leasing approach and timely communication regarding potential changes to tax credits reflect its commitment to staying ahead in a rapidly shifting market. As 2023 draws to a close, Tesla’s moves indicate a strong desire to end the year on a high note – again.
By Kevin Armstrong
Tesla recently parted ways with Wiferion, the German-based wireless charging startup they acquired earlier this year. However, the intriguing part of the deal is Tesla’s decision to retain all of Wiferion’s engineers. A closer look reveals a strategic game plan focused on acquiring some of the brightest engineering minds in the domain.
While the acquisition and subsequent sale of Wiferion might raise eyebrows, Tesla’s decision to retain all of Wiferion’s engineers lines up with its overarching strategy to attract and retain the best minds. This move bears all the hallmarks of “acqui-hiring,” a tactic tech giants use to rapidly onboard top talent by purchasing companies primarily for their human capital rather than their products or services.
By keeping Wiferion’s talent pool, Tesla has effectively bolstered its ranks with experts in wireless charging. This indicates that the company is still very invested in the wireless charging game.
Wiferion’s Legacy in Wireless Charging
Founded in 2016, Wiferion made waves in the industry with its innovative inductive charging systems tailored for industrial applications. Their technology could deliver up to lots of power and redefine rapid charging. It wasn’t just about the product but about the minds that made it possible.
Tesla’s acquisition of Wiferion was initially seen as a move to enhance its charging capabilities. The Freiburg-based startup’s technology promised nearly instantaneous charging transitions, delivering up to 12 kilowatts of power. With over 8,000 charging stations sold to industrial customers, Wiferion had already marked its territory in the market.
At a Tesla Investor Day presentation earlier in the year, a seemingly innocuous slide presented by Rebecca Tinucci, Tesla’s Senior Director of Charging Infrastructure, hinted at a future with wireless charging. Couple that with the acquisition of Wiferion, and Tesla’s ambitions in this domain become crystal clear.
With Tesla’s diverse portfolio, including Optimus, the applications of wireless charging and the minds behind it extend beyond vehicles. The expertize acquired from Wiferion could be integrated into various facets of Tesla’s innovation pipeline. Could this have been Tesla’s plan all along? A strategic move to swiftly integrate top-tier talent into its vision for the future of EV charging? The answer is obvious if you read any biographies about Elon Musk.