Print 37 comment(s) - last by superstition.. on Dec 24 at 12:19 AM

Cheapest Tesla Model S won't be available until Winter 2012

Tesla Motors has been teasing its gorgeous Model S electric sedan for well over two years now. Now the company has confirmed the official pricing for the vehicle, and is holding firm on the $49,990 price of entry after $7,500 federal tax credit.
As it stands now, here's how the four Model S variants will stack up (compared based on their battery capacity). All price listed include the tax credit:
(40 kWh)
$49,900, 0-60 in 6.5 seconds, 110 mph top speed, 160-mile range
(60 kWh)
$59,900, 0-60 in 5.9 seconds, 120 mph top speed, 230-mile range
(80 kWh)
$69,900, 0-60 in 5.6 seconds, 125 mph top speed, 300-mile range
(85 kWh Performance)
$79,900, 0-60 in 4.4 seconds, 130 mph top speed, 300-mile range
All Model S sedans come standard with a 17" touchscreen, 19" wheels, and seating for up to seven passengers. Yes, you read that correctly; the Model S has seating for seven courtesy of two [optional] rear-facing jump seats in the rear cargo area.


Tesla Model S

Tesla's ordering page also lists all of the available options for the Model S including a $1,500 panoramic roof, $3,750 tech package, $1,500 active air suspension, and $1,500 rear-facing seat option.
The two 85 kWh variants will be made available in Summer 2012, the 60 kWh arrives in the Fall 2012, and the entry-level 40 kWh variant won't be available in the U.S. until Winter 2012 if all goes as scheduled. 

Tesla Model S jumpseats [Source: Autoblog]

Sources: Tesla Mors [Press Release], Tesla Motors [Pricing and Options]

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RE: Please....
By mjdaly on 12/21/2011 12:02:03 AM , Rating: 1
Except it is not.

A $7,500 tax credit does not "give" you anything unless you owe nothing. It means only that the government is going to take less.

If this were a direct rebate off the price of the car, then yes, it would be a plus. Rather, this is a modifier on how much the government is going to take from you this year.

The fact remains, the price of the car does not change.

RE: Please....
By SigmundEXactos on 12/21/2011 12:26:19 AM , Rating: 5
You don't seem to understand how tax credits (not tax deductions) work. If before you owed $10,000 in taxes, and you bought this car (for $57,400), you would now owe $2,500 in taxes. In other words, you effectively paid $10,000 in taxes regardless, and if you buy this car, the effective cost is $49,900.

RE: Please....
By mjdaly on 12/21/11, Rating: -1
RE: Please....
By kingmotley on 12/21/2011 2:05:51 AM , Rating: 2
Ok, so instead of writing a check to the government for $10k, now I'm only writing a check for $2.5k, and you say that doesn't matter? You're being silly.

That's the same as if I wrote them a check for $10k, and they wrote me one back for $7500.

RE: Please....
By mcnabney on 12/21/2011 9:11:50 AM , Rating: 2
I would also point out that since it is a tax credit it is refundable.

That means if you are retired and have NO INCOME, you can still get your $7500 back as a tax credit.

RE: Please....
By mjdaly on 12/21/2011 12:24:15 PM , Rating: 1
If you look what was said below, this tax credit is actually non-refundable. I made a similar assumption in my example above and after looking it up, confirmed it is non-refundable. You will never get the money back from the credit itself.

RE: Please....
By jimbojimbo on 12/21/2011 9:54:34 AM , Rating: 1
So you wouldn't care if I stole $10,000 from you or $2,500? OK, I'll take the $10,000 since it's all the same to you.

RE: Please....
By idiot77 on 12/21/2011 1:23:10 AM , Rating: 2
No, it's you that does not understand.

Not all tax credits are refundable (child care, education, etc), but some are. Go look at a 1040 and look at the two different places they put tax credits. One you MUST have a tax due before taking it, the other you can actually get a credit back even if you don't have tax due. As I recall those are all related EIC and a couple other more obscure (and often very old) rules.

RE: Please....
By mjdaly on 12/21/2011 1:55:22 AM , Rating: 1
You are correct, I missed that this credit is non-refundable.

My overall meaning here is that the tax credit doesn't actually change the price of the car, and depending on end of year tax liabilities, you might not even get the full use of the credit. It is a modifier on what the government is owed, not one on what has been paid for the car.

Truthfully, this tax credit shouldn't even exist. This is just one more example of why our tax system sucks.

RE: Please....
By sigmatau on 12/21/2011 11:43:11 AM , Rating: 2
That must be the worst example of all examples made on the Internet.

Dude, you still get $7500 to pay your tax liability. If you didn't buy that car that year you wouldn't have the $7500 to pay your $10000 tax liability.

So by your example, if someone gets $50,000 back from their taxes from their income or whatever, and buys this car the same year, he he would be getting it free?

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