EV Credit News, Tesla Price Changes, Cybertruck Updates, Brand Loyalty (10.09.23)
Oct 9, 2023
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EV credit guidance issued by IRS and Treasury Department, Tesla lowers prices and changes incentives, Cybertruck updates including livestream and castings at Giga Texas, China sales update, Tesla comments on lithium refinery, V4 Supercharger installations begin, S&P publishes automotive brand loyalty data, union updates
Tesla reduces Model 3 and Model Y prices in the US while adjusting referral program and increasing price in Norway and Sweden, potentially impacting margins.
US Department of Treasury and IRS release new guidance on EV Tax Credit allowing consumers to transfer the credit at point of sale, making it more accessible and immediate.
Deep dives
Tesla's Pricing Updates
Tesla has made changes to the pricing of Model 3 and Model Y in the United States, reducing the prices by various amounts. These price cuts may be offset by lower costs per unit in Q4 due to economies of scale and better utilization. However, the removal of inventory discounts may have a material impact on margins. Additionally, Tesla has reduced discounts from the referral program and increased the price of the Model Y in Norway and Sweden.
US Federal EV Tax Credit Changes
The US Department of Treasury and the IRS have released new guidance on changes to the EV Tax Credit beginning next year. Consumers will be able to transfer the credit to the dealer or seller at the point of sale, reducing the vehicle's purchase price. The guidance also states that eligible consumers may transfer the full value of the credit, regardless of individual tax liability, and the credit becomes fully refundable. These changes are expected to have a major impact and make the credit more accessible and immediate for consumers.
Cybertruck Updates
Tesla engineers have been testing the Cybertruck in Baja, Mexico and reported no real issues with the difficult terrain. The successful test suggests that Tesla is getting closer to being ready for production. Images also show a large number of Cybertruck castings piling up at Giga Texas, indicating higher levels of production. In a recent auction, a low-VIN Cybertruck was sold for around $400,000. Lastly, V4 supercharger pedestals have been spotted in Oregon and Nevada, indicating the expansion of V4 supercharging.
➤ IRS and Treasury Department issue EV credit guidance ➤ Tesla lowers prices, changes other incentives ➤ Tesla livestreams Cybertruck in Mexico ➤ Cybertruck castings at Giga Texas ➤ China sales update ➤ Tesla comments on lithium refinery ➤ V4 Supercharger installations begin in US ➤ S&P publishes automotive brand loyalty data ➤ Union updates
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Executive producer Jeremy Cooke Executive producer Troy Cher asaro Executive producer Andre/Maria Kent Executive producer Jessie Chimni Executive producer Michael Pastrone Executive producer Richard Del Maestro Executive producer John Beans Music by Evan Schaeffer
Disclosure: Rob Maurer is long TSLA stock & derivatives
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