DailyTech - Tesla Model S Officially Priced from $49,990 after Tax Credit, Available Summer '12

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Auto Tesla Model S Officially Priced from $49,990 after Tax Credit, Available Summer '12
Brandon Hill (Blog) - December 20, 2011 9:44 PM

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 1:00:12 AM , Rating: -1

You have just invalidated your argument. At the end of the year, given the example, you still owe money. You do owe less, but that is not money in pocket, the price of the car stayed the same.

Simply put, because you went there, a tax deduction reduces the total taxable income at the end of the year, while a credit counts directly to taxes paid. Unless the credit has caused the amount of taxes paid to be greater than the taxes owed, it is not going to change the real price of the car. This will vary from person to person. Changing the amount of money the government is taking from you at the end of the year does not matter until it results in positive number in your favor.

Less of a loss is still a loss. Going from $10,000 owed to $2,500 owed isn't giving any money, it is simply the government taking less. Unless you withhold taxes at the appropriate amount and have a tax liability less than the credit, the real price of the car does not change.

The fact that the government is taking less of your money does not mean that you saved on the car, only that you saved on taxes.

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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.

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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.

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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.

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