With regard to the IRA, I'm sure this has been discussed, but in case it hasn't we see a LOT of discussion around how the Model Y 5 seater has been classified as a car and thus subject to the $55K max MSRP. I agree that is totally, absurd but all we and Tesla can do is try to protest with the IRS.
However, one thing I don't see much is the impact of FSD on eligibility for even the 7 seat version at current pricing. I believe the IRS rules assume the MSRP is inclusive of all options, so if we go to the board a fully loaded Model Y 7 seater prices out like this:
- $65,990 - Model Y Long Range Dual Motor All-Wheel Drive
- $2,000 - Red Multi-Coat Paint
- $2,000 - 20’’ Induction Wheels
- $1,000 - Black and White Premium Interior
- $3,000 - Seven Seat Interior
- $0 - Autopilot Included
- $15,000 - Full Self-Driving Capability
- $1,000 - Tow Hitch
$89,990 - Total Vehicle Price
This is nearly $10K over even the higher $80 limit! This puts Tesla in a bit of a quandary. The options I see are:
1. Given the take rate of FSD is comparatively lower than other options, they could just say "yep, it's expensive and you lose the credit....sorry".
2. The could drop the base price of the car and other options by $10K to allow room for a $15K FSD. Not ideal, IMO, as this means lower revenue across the board for the few people that will take FSD.
3. They lower the price of FSD to $5K - tough as it is tantamount to saying "Yeah, FSD was never really worth $15K"...not a great message.
4. They do a mix of price lowering across everything (base price and ALL options including FSD.
5. FSD drops as an option and goes pure subscription only or combination of something like $5K purchase which gives you discounted subscriptions for life or whatever.
Unlike the IRS pushback, THIS decision on the 7 seater is totally within Tesla's control and this is the item they need to address ASAP (IMO) since we are in 2023 now and every day they don't address this is a potential lost sale (or at least loss of FSD purchase for those that are at all price sensitive...and, of course, under the income limits).
I might put figuring out the whole long range Model 3 scenario next on the list....and it also has a similar FSD bogey.
Just my 0.02!