Don't care about Musk's "negative" behaviors? Good time to buy a Model 3 @ $23k?

[theking]

Tesla Model 3 now costs as little as $23K in California thanks to tax credits

The Model 3 RWD can be had for as little as $22,830 when combining federal and state incentives.

The holy grail for electric vehicle adoption is said to arrive once mainstream EVs could be had for under $30,000. For some buyers in the US, this is now reality — thanks to government subsidies.

Earlier this week Tesla (TSLA) announced on its website that all versions of the Model 3 sedan now qualify for the full federal EV tax credit of $7,500; previously the cheaper Model 3 Rear-Wheel Drive (RWD) version qualified for half the amount. The federal government confirmed the announcement on its fueleconomy.go v website.

Stay ahead of the market
The federal government’s requirements for the EV tax credit mandate that 40% of the critical minerals be extracted in the US or a country with a free trade agreement, and 50% of the value of the battery components must be manufactured or assembled in North America.

Though no reason was given for the change, it can be presumed Tesla updated where it was sourcing the materials for the Model 3 RWD batteries or where it has assembled the packs. Prior to the announcement, Tesla was reportedly using LFP (lithium ion phosphate) battery cells made by China’s CATL.

Nevertheless, inclusion of the full federal tax credit means the Tesla Model 3 RWD now costs $32,740 if buyers meet criteria including income restrictions and MSRP caps ($55,000 for cars; $80,000 for trucks and SUVs).

While $32,740 is a relative deal in a new car market where the average price is around $45,000, more incentives can be had on EVs like the Model 3 that pull prices even lower. New York state offers up to $2,000 off EVs via its Drive Clean Rebate for which the Model 3 qualifies.

In California, the state offers an even bigger incentive — a $7,500 tax rebate that depends on income and other requirements. Inclusion of both the federal and California state incentives drops the Model 3 down to $25,240 - which Reuters notes is below the cost of a new Toyota Camry (starting price $26,320).

Furthermore, Tesla has local incentives in states like California for specific vehicles. Tesla is currently offering a $2,410 incentive for the Model 3 RWD in Southern California, meaning the price for this car including all tax incentives drops it to an astounding $22,830 if the buyer meets all eligibility requirements.

[Cali Guy]

Already researched, no qualification. It’s very likely you guys don’t either since thresholds are so small.

[theking]

Good to know. My wife already got her EV and Elon Musk's "negative" behaviors in recent months turn her off anyways...so all good.

[theking]

I think Musk has been trying to move his EVs in hopes of increasing its' stock value ..several discounts happened this year so far.. ...

[DuMa]

So they put a income cap on this program eh?

So tell me again, after discount, which low income people can afford a telsa even at that price?  makes no sense

The low income people I know drives second hand vehicles that can not pass smog   

[theking]

Elon Musk Talks About a $20,000 Tesla
Tesla, the electric vehicle maker run by the billionaire, has no models under $40,000 in base price.

This is the recurring debate when it comes to Tesla and its expansion into deep America.

Can the Austin, Texas-based automaker offer a model whose price could convince a large number of consumers to buy an electric vehicle? Basically, when is Tesla going to manufacture a low-cost vehicle that could allow it to target the 80% of American consumers that the group does not reach?

On the group's Investor Day on March 1, many analysts had speculated that Elon Musk, the group's whimsical and charismatic CEO, would unveil a Model 2, that is, a $25,000 Tesla car.

On that day, the carmaker revealed no new passenger vehicles. The last time Tesla unveiled a new vehicle was in November 2019 and it was the highly anticipated Cybertruck, its very first pickup truck.

Since then, there has been nothing, and the wait has been long. A Model 2 could have enabled Musk's group to reach a large consumer segment in the West and to conquer emerging countries. Musk and Tesla would have delivered a blow to their rivals.

Since then, Tesla and Musk have seen rivals unveil low-cost electric vehicles. On March 15, Volkswagen  (VWAGY) - Get Free Report unveiled an electric vehicle, priced at less than 25,000 euros ($26,400). The German juggernaut called this concept car the ID. 2all. The version that will be available to the public will be produced from 2025.

A month after Volkswagen's big news, BYD  (BYDDY) , Tesla's Chinese rival, unveiled the Seagull, a $11,000 electric vehicle, making it by far the cheapest EV currently on the market.

Tesla  (TSLA) - Get Free Report has, however, found a way to make its cars more affordable. This year, the company has lowered prices several times, so the Model 3, Tesla's entry-level vehicle, costs $40,240. Consumers can buy it for much less once they subtract the $7,500 federal tax credit available since January in the United States, a Twitter user noted on June 8. The user added that it was even possible to purchase this sedan at $20,000 in certain states which offer additional discounts.

'Extremely Rare'
"The general public still think that Tesla’s are very expensive," the Twitter user posted. "With tax incentives they are getting below 30,000 and then some states you can get a Tesla for 20,000 with tax incentives. This is truly mind blowing, and the best time to get a Tesla."

Faced with this comment, Musk intervened to reframe things somewhat and in particular on the fact that it was possible to afford a Tesla for $20,000. For the billionaire, we are still far from it. But he believes that the various incentives for clean vehicles and the price actions taken by Tesla make the group's cars affordable for a large number of consumers.

"Qualifying for the ~$20k car is extremely rare," the Techno King, as he's known at Tesla, commented, clearly stating that the possibility for a customer to buy a Tesla car for $20,000 was very limited. "But the $7500 credit applies to the vast majority of electric vehicle buyers (across all manufacturers)."

Last month, Musk announced that Tesla would start advertising to educate the public about the prices of Tesla cars. In addition, it is necessary to educate consumers on Tesla features, Tesla products and the technological innovations of the company, which, the tech mogul claimed, are advanced on artificial intelligence, compared to Google's Waymo, for example.

Musk added that advertising Tesla products will also allow the carmaker to reach new audiences, as Tesla aspires to produce tens of millions of vehicles per year.

"We'll try a little advertising and see how it goes," Musk told shareholders during the annual meeting.

[theking]

Teslas are cheaper than ever — and that's creating a headache for the entire auto industry

A Tesla Model Y now costs less than the average vehicle. The new lower-cost strategy is eating into Tesla's profits, but it seems to be working Patrick Pleul/Getty Images
You can now get a Tesla Model Y for cheaper than the average car.
Tesla is making big moves into the mass market this year.
Price reductions hurt Tesla's profit margins slightly in the first quarter, but they're boosting sales volume.
Tesla's price war is spilling over out of the electric vehicle market as Elon Musk's car company continues to slash prices.

Musk has dropped the prices on Tesla models six times since the start of the year, kicking off a price war with mainstream car brands like Ford and GM.

So far, Tesla's pricing strategy has been seen through the lens of the EV market and Musk's efforts to protect Tesla's spot as the number one seller of electric vehicles in the US, but now Tesla's vehicles are priced more comparably with the entire vehicle market.

For example, after Tesla's latest price reductions last week in the U.S., the Model Y now starts at $46,990. Add on the $7,500 EV tax credit, and you can now purchase a Model Y for around $42,500. That's about $5,200 cheaper than the average price paid for any vehicle in the US in March, according to car-shopping website Edmunds.

To make things even worse for competitors, all Model 3 and Model Y vehicles now qualify for the full tax credit, too.

"For so long people have seen price and infrastructure as the limiting factors for buying an EV, and Tesla has just blown that out of the water," Martin French, managing director at consultancy Berylls, said in an interview. "They've just said, 'we can offer you a vehicle at about $40,000, and by the way, you can use our Supercharger network.'"

In addition to price reductions, Tesla has been dangling special offers like free charging for new customers.

It's the latest move for Tesla into the mass market this year. Musk has said the company is aiming to build 2 million vehicles this year, doubling 2022 production.

Tesla's sales were up in Q1 — but margins were smaller
Tesla went into 2023 with bloated inventory – the opposite problem most of its competitors were facing. Musk spun this problem into an advantage by lowering the prices at the same time others were still charging well above sticker price on dealer lots.

As a strategy for boosting demand, Tesla's price cuts appeared to be working in the first quarter, reporting a 36% increase in deliveries during that period.

The move had some analysts and investors worried that Tesla could cede its industry-leading profit margins for bigger sales volumes. And their fears proved to be true: Tesla reported lower margins for the first quarter.

"We've taken the view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin," Musk told analysts as they grilled him and other executives about the softness.

For now, he seems to have calmed their nerves. Tesla shares are up more than 131% since January 1, easily outpacing the benchmark S&P 500 index.

[theking]

YUP:

Why Tesla Stock Is Going Through the Roof -- And Where It Could Go Next

It's hard to pin down just one reason behind Tesla's recent win streak.

Tesla stock has been on a wild green run for the past month. The electric vehicle leaders continue to beat their record win streak with 13 consecutive days of gains so far.

Over the past week, the stock jumped more than 15%; Tesla shares are up more than 40% for the past month and more than 110% for the year.


Why Tesla Is Doing So Well
Though only one group has any reason to be upset about the recent gains catapulting Tesla's stock -- Tesla shorts have lost more than $12 billion in mark-to-market losses for the year -- the reasons behind the surge are multi-faceted.

It is certainly no coincidence that the surge came amid news of partnerships between two of the biggest legacy carmakers -- Ford and General Motors -- and  (TSLA) - Get Free Report.
 

Some analysts at the time said that, though Tesla will pick up some revenue from the charging infrastructure, the move was largely better for its competitors than Tesla itself.

"They are giving the rails to these competitors which have been struggling," Deepwater Management analyst Gene Munster said. "I think ultimately what Elon is doing here is he's making good on his promise that he wants to advance electrificatio n."

Another thing getting investors excited about the EV makers is that, on June 7, Tesla Model 3 vehicles officially qualified for the $7,500 EV tax credit, suddenly making Teslas much more affordable.

At the same time, more news about the much-anticipated Cybertruck has surfaced; after earlier predictions that it would make around 250,000 units per year, Tesla has said that it will be aiming to produce around 375,000 per year.

The Cybertruck is set to be available by the end of August.

Possibly playing a part in Tesla's recent success story is the fact that, starting June 5, Elon Musk stepped down as the CEO of Twitter, handing the role off to Linda Yaccarino.

Where Is Tesla Headed?
Whether this explosive growth can continue might come down to whether investors view Tesla as an AI company or a car company.

Cathie Wood, CEO and investment lead of Ark Invest, has long been bullish on Tesla. Wood said recently that Tesla is the "most obvious beneficiary of the recent breakthroughs in AI."

She thinks the car company is poised to see up to $10 trillion in revenue by 2030 from a quickly surging autonomous taxi business.

Wood is not alone in her position of Tesla as an AI-first company; KGI Securities Analyst Jennifer Liang, giving Tesla a price target of $335, said the company's work in AI is underappreciat ed.

Morgan Stanley analyst Adam Jonas, however, said in a recent note that the market is trying to view Tesla as an AI company first, and a carmaker second.

"More than an 'AI Play," we believe Tesla's role in building a de-risked EV supply chain is underappreciat ed by the market," Jonas wrote.

[theking]

Also YUP..."Kmart blue light special" fo sho:

Tesla offering free Supercharging to entice Model 3 buyers

Tesla (TSLA) is running something of a Kmart “blue light” special to move inventory ahead of the quarter end.

According to Tesla’s website, the company has been offering three months of free charging at its Supercharger Network for purchases of the Model 3 sedans in inventory. The cars must be delivered by June 30 in the US and Canada in order to get the deal.

Although Tesla has in recent quarters been keen to deliver as many cars as possible to boost its quarterly delivery numbers, it appears there may be another reason for Tesla to shrink Model 3 inventory at this time.

A much-rumored update to the Model 3, codenamed project “Highland,” has been reportedly in the works for some time now, and the expectation is the car will be revealed soon. Reports suggest that CEO Elon Musk was going to unveil the updated Model 3 during his trip to China earlier this month.

The free Supercharging incentive comes after the federal government said all Model 3 trim levels were eligible for the full $7,500 electric vehicle tax credit. Previously the base Model 3 rear-wheel drive (RWD) received only half the credit, likely due to where the battery’s critical minerals originated from or where battery components were manufactured.

The Model 3 isn’t the only Tesla vehicle that is receiving a free Supercharging incentive. Tesla is offering three years of free supercharging for new purchases of the company’s higher-end Model S and Model X vehicles, with delivery having to take place before June 30.

[theking]

Tesla is offering 3 years of free supercharging and big discounts to sell more cars by June 30

Tesla is offering big discounts on its Model S and Model X cars.
It is also offering three years of free supercharging for customers who buy before June 30.
Musk has slashed prices repeatedly this year as he looks to cement Tesla's position in the market.

[theking]

Is Tesla’s $40K Electric Car Really a Bargain Now That the Price Has Been Slashed 6 Times?

Cutting $2,000 off the Model 3, it has a base cost of $39,990, making it a relative “bargain” among EVs. This is true even though it is still more expensive than many hybrid plug-ins and 2023 EV models, like the Chevy Bolt EUV, the Mazda MX-30, the Hyundai Kona Electric and the Kia Nero EV, per Edmunds rankings

[theking]

For some drivers, Tesla’s Model 3 is now cheaper than a Toyota Camry — here’s why the price has dropped so low

The market for electric vehicles (EVs) is buzzing after a recent announcement by Tesla regarding its Model 3 and the batteries that power it.

For some drivers, Tesla’s Model 3 has gotten so cheap that it now can cost less than a Toyota Camry.

The EV market grappled with new requirements set by the federal government last year regarding clean vehicle tax credits for new plug-in electric and fuel cell vehicles. The passing of the Inflation Reduction Act led to a significant change in the tax credit system laid out by the IRS, adding additional requirements for vehicles to qualify for the tax credit.

Under the new legislation that went into effect in April, a vehicle’s final assembly must be in North America — and this must include critical minerals and battery components that meet requirements — to qualify for a clean vehicle tax credit of up to $7,500. There are further restrictions relating to vehicle price and a buyer’s income.

After the government announced the new requirements under the Inflation Reduction Act, Tesla worked quickly to adjust its battery supply chain so that all of Tesla’s Model 3 vehicles qualified for the federal tax credits, as reported by Reuters.
Even better news, if you live in California, you can double dip on the tax credit with both federal and state incentives of up to $7,500 each.

According to Tesla’s website, a new Tesla Model 3 was $32,740 (as of mid-June) with the federal clean vehicle tax credit factored in. Subtract the additional California tax incentive of $7,500, and the price of a Model 3 may be reduced to $25,240, making the EV cheaper than a brand-new Toyota Camry (starting at $26,320, as of mid-June).

It’s a significant milestone that brings the price of a high-tech EV like the Tesla Model 3 within reach of more consumers. Eventually, this financial accessibility may trigger a domino effect of positive impacts, from boosting EV adoption rates and cutting air pollution to accelerating our journey toward a greener future.