Tesla Says You Can Avail EV Credit Even If You Take Delivery After September 30 Deadline: Here's How
Tesla Inc. has updated its website to confirm that customers can still qualify for the IRA Federal EV credit even if they take delivery after the September 30 deadline, provided they order by that date and make a cash purchase. Leasing customers must take delivery by the deadline. This update follows IRS revisions allowing post-deadline deliveries with a binding purchase contract. Additionally, California is considering state incentives for EVs beyond the federal deadline. Tesla is expected to exceed Q3 delivery estimates, although Q4 may see a decline without incentives.
Tesla Inc. TSLA has updated its website, illustrating that customers can still avail the IRA Federal EV credit even if they take delivery of the car beyond the September 30 deadline.
Tesla Confirms Updated IRS Terms
The company updated the wording on its website on Sunday, which now confirms that customers can avail the credit even if they order their vehicles by September 30. However, the terms only apply to cash purchases of the vehicle.
Source: Tesla
The website suggests that customers leasing their vehicles would still need to take delivery on or prior to the September 30 deadline to qualify for the $7,500 EV credit.
Source: Tesla
IRS Updates EV Credit Terms
The news comes as the Internal Revenue Service (IRS) announced a series of revisions to its terms about the Federal EV credit. The updated terms now stipulate that customers can take delivery of the vehicles after the September 30 deadline and still avail the incentive as long as they "sign a binding purchase contract and issue a payment." Payment can include a nominal down payment or a trade-in, the IRS confirmed on its website.
California May Offer EV Incentives Beyond Deadline
Meanwhile, the California government is mulling offering incentives on EVs beyond the Federal Credit deadline via "backfilling" as state governor Gavin Newsom doubled down on greener mobility. "The credits could be offered in the form of “point-of-sale rebates, vouchers, or other credits,” the government said.
Tesla's Q3 Delivery Expectations
Tesla, meanwhile, is expected to surpass Wall Street estimates of its Q3 deliveries, which led to a stock surge. However, experts like Gerber Kawasaki's co-founder Ross Gerber warn that it could be temporary, as Q4 deliveries without the incentives could decline.
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