Tesla Model 3 Loses Half Its EV Credits. GM’s Full EV Lineup Gets to Keep Them All....

[dasari4kntr]

The Internal Revenue Service will update which electric vehicles qualify for what credits this week. Companies have started to steal the agency’s thunder. The news is better for some EV makers than others.

General Motors (GM) announced Monday that its full lineup of electric vehicles will qualify for the $7,500 tax tax credit. It’s a good outcome for the company and shares were rising Monday.

And the outcome for GM is better than those for Ford Motor F +1.28%  ‘s (F) Mustang Mach E or the Tesla TSLA +1.10%  (TSLA) Model 3.

Tesla ‘s website now says the rear-wheel drive Model 3 will only qualify for a $3,750 federal purchase tax credit starting on April 18. The website still says that all Model Ys qualify for the full credit.

Ford said its Mustang Mach E lost half of the credit on April 5.

The IRS is redoing credit qualifications to account for where batteries are purchased and where battery materials are sourced. The Mach E lost half its credit because of battery sourcing. Tesla didn’t immediately respond to a request for comment from Barron’s about why it lost half the credit. Battery sourcing is most likely the reason.

At least some of the batteries for Tesla’s standard range vehicles come from China’s Contemporary Amperex Technology Co Ltd (300750.China), which is better known as CATL.

Investors have known that changes were coming. Still, Tesla stock was down a little in Monday trading, while GM rose 1.3%. The S&P 500SPX +0.33%  and Dow Jones Industrial AverageDJIA +0.30%  were hovering around flat for the session.

The credits have been a source of some volatility for EV stocks. To start, the IRS didn’t classify the Model Y or Mach E as sport-utility vehicles. They reversed that decision later. Then came the update at the end of the first quarter that credits for vehicles would be adjusted by April 18

 

The credits, passed as part of the Inflation Reduction Act, have been harder to implement than most investors expected.

[Piracy Raja]

Model Y?

[hunkyfunky2]

I think Model 3 will get its credit back once it switches to US made batteries.  Probably along with redesign of Model 3 which is being tested now. 3750 is lot of free money to lure customers. 

Some rumors that Model 3 redesign will actually be cheaper - so they have a competitive car before Model 2 is designed. 

[Gorantlamdhav]

full list is here

https://fueleconomy.gov/feg/tax2023.shtml

[Vikkasr]

@dasari4kntr ee tax credit ki kooda max house hold income cap undi kada?

[dasari4kntr]

4 minutes ago, Vikkasr said:

@dasari4kntr ee tax credit ki kooda max house hold income cap undi kada?

adi next year nunchaa or this year..? 

[Vikkasr]

Just now, dasari4kntr said:

adi next year nunchaa or this year..? 

I think eppati nuncho vundi anukunta. Not 100% sure.

okkapudu bayarea lo ev sticker, tax credit rendu ichevadu. Tharuvatha pick one. Final gaa household income tho mudi pettaru ani vinna.

[Vikkasr]

Who Qualifies

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly 
• $225,000 for heads of households
• $150,000 for all other filers
   

@dasari4kntr

[dasari4kntr]

3 minutes ago, Vikkasr said:

Who Qualifies

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly 
• $225,000 for heads of households
• $150,000 for all other filers
   

@dasari4kntr

i am getting confused with this…

https://www.theverge.com/23310457/inflation-reduction-act-ev-tax-credit-act-explainer-how-to?ssp=1&darkschemeovr=1&setlang=en-US&safesearch=moderate

What are the income requirements for the EV tax credit? Should I buy now or wait?

If you’re rich, now is the time to buy. Right now, there are no income requirements for who can claim the credit. But starting January 1st, the credits will be capped to an income level of $150,000 for a single filing taxpayer and $300,000 for joint filers.

[hunkyfunky2]

7 minutes ago, dasari4kntr said:

i am getting confused with this…

https://www.theverge.com/23310457/inflation-reduction-act-ev-tax-credit-act-explainer-how-to?ssp=1&darkschemeovr=1&setlang=en-US&safesearch=moderate

What are the income requirements for the EV tax credit? Should I buy now or wait?

If you’re rich, now is the time to buy. Right now, there are no income requirements for who can claim the credit. But starting January 1st, the credits will be capped to an income level of $150,000 for a single filing taxpayer and $300,000 for joint filers.

Jan 1st 2023. 

[manadonga]

How long we need to use tesla 

when can we sell car to get all credits 

[hydusguy]

41 minutes ago, Vikkasr said:

Who Qualifies

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly 
• $225,000 for heads of households
• $150,000 for all other filers
   

@dasari4kntr

chala mandi qualify kaaru 300k joint ante

[Anta Assamey]

3 hours ago, dasari4kntr said:

adi next year nunchaa or this year..? 

Nope its always there..

[Anta Assamey]

From TESLA website..

$7,500 tax credit for Model Y and Model 3.

Model 3 RWD credit reducing to $3,750 on April 18.

[Thokkalee]

2 hours ago, manadonga said:

How long we need to use tesla 

when can we sell car to get all credits 

You have to sell it for a loss.. 

I guess, model 3 rwd inka price cut chesthaadu to cover for the loss of tax credits..