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Best Time to Buy a Tesla: 2024 Tax Credit and New Models

For electric vehicle shoppers, 2024 is shaping up to be a pivotal year when it comes to Tesla ownership. Between federal tax credit changes that will save buyers thousands upfront and highly anticipated new models like the Cybertruck, there are compelling reasons to wait until 2024 before bringing home your new Tesla. This guide will overview the benefits of waiting a couple more years and key factors to know when considering a Tesla purchase.

Background on the Federal EV Tax Credit

First, it’s important to understand how the federal electric vehicle tax credit works currently. The program was created to incentivize EV adoption by providing a dollar-for-dollar credit on your tax return. For Tesla vehicles, this credit was valued at $7,500 until Tesla hit the 200,000 vehicle cap in 2018. Since then, the credit amount has been decreasing by 50% every 6 months and will be completely phased out for Tesla buyers as of January 1, 2023.

However, the recently passed Inflation Reduction Act made some pivotal changes to the EV credit to boost future adoption. Starting in 2024, the credit will become available at the point of sale, meaning buyers can take $7,500 off the MSRP directly instead of waiting to file taxes. This discount at the time of purchase will make EVs more accessible and affordable. The Act also removed the 200,000 vehicle per manufacturer cap, meaning Tesla buyers will once again qualify for the full $7,500 credit in 2024.

Benefits of Waiting Until 2024

Given these upcoming changes, there are compelling financial benefits to waiting until 2024 before purchasing your new Tesla. Here are some of the key advantages:

  • Receive a $7,500 point-of-sale discount: Instead of a tax credit you receive the following year, you can take $7,500 off the upfront purchase price. This will significantly improve affordability.
  • Take advantage of new models and features: Tesla has exciting new models in the pipeline for the next couple years including the Cybertruck, Roadster, and rumored cheaper Model 2. These brand-new options may better suit your needs.
  • More competition and declining prices: With more automakers releasing appealing EVs, increased competition may naturally force downward price pressure industry-wide.
  • Improvements in range and other capabilities: As battery tech continues improving in coming years, you may benefit from longer range and faster charging on 2024 model year vehicles.

Waiting a couple years to purchase your Tesla could save you thousands thanks to the restructured tax credit while also allowing time for the EV market to mature.

Highly Anticipated New Tesla Models

If you can wait until 2024, holding off will also allow Tesla more time to work out production kinks and prove capabilities on some of their most exciting models coming down the pipeline. Here’s a preview of what’s to come:

Tesla Cybertruck

Easily Tesla’s most polarizing model to date, the Cybertruck aims to be the ultimate utility truck with up to 500+ miles of range, adaptive air suspension, and 0-60 acceleration under 2.9 seconds on the high-end tri-motor model. With its stainless steel exoskeleton and angular design, it certainly stands out from the crowd aesthetically as well.

However, Tesla has already delayed Cybertruck production from late 2021 to early 2023 at the absolute earliest. With any first-year production car, there are bound to be challenges fine-tuning manufacturing and confirming capabilities. Early adopters may risk quality control issues or not getting some headline features fully validated.

Considering waiting until 2024 allows Tesla more time to smooth out production and lock down specs. Over the next couple years, real-world range numbers should be confirmed by the EPA, towing capacity can be thoroughly tested, and build quality refined before full-scale production.

As a bonus, Cybertruck will offer bidirectional charging to power your home during an outage thanks to the large battery pack. The features are compelling but give Tesla engineers more time to deliver on promises before jumping in.

Tesla Roadster

Originally unveiled in 2017 with production scheduled for 2020, the next-generation Tesla Roadster has since seen a delayed and uncertain rollout. Designed as an elite supercar with record-setting performance, this $200,000+ vehicle was meant to shake up the high-end market.

Reported specs continue sounding impressive with 0-60 mph under 2 seconds thanks to SpaceX rocket thrusters, 620 miles of range, and more. However, Tesla has been uncharacteristically silent when it comes to firm details, updated timelines, or even confirmation that the Roadster will become a reality anytime soon.

Many speculate that Tesla is focused all resources on Cybertruck, Semi, and Model Y production challenges for now. While a 2023 production date was once guidanced, most experts believe it’s unlikely at this stage. If the Roadster remains on your radar, 2024 or later may finally provide some clarity and confidence around rollout plans.

Rumored Model 2

While not formally announced yet, rumors have swirled for years that Tesla is working on a more affordable model codenamed the “Model 2”. Expected to sell for around $25,000, this budget EV would target mass adoption with a scaled-down range around 250 miles.

Elon Musk recently mentioned wanting to launch a model costing half of the Model 3 and Y within the next 3 years. If the Model 2 does come to fruition, production would likely ramp up in 2024. Having a lower-priced EV alternative on the market could also compel Tesla to drop Model 3/Y pricing to stay competitive.

No matter what new models ultimately release in coming years, expanding Tesla’s lineup should only benefit consumers through increased selection and price competition. Letting their portfolio mature through 2023 sets buyers up nicely for 2024 model year purchases.

Key Considerations Before Buying a New Tesla

While a 2024 Tesla purchase date takes advantage of upcoming tax savings and latest offerings, some factors to remain mindful of include:

EV Tax Credit Details in Flux

The revamped federal tax credit includes new requirements around battery component sourcing and price caps coming in 2024. Final details are still being finalized on the full eligibility rules. It’s possible not all Tesla models or trims will qualify or caps could change purchase priorities.

Any buying decision should assess the latest federal and state incentive rules 12+ months before purchase in case strategic factors like pricing, availability, or product changes become necessary.

Range and Charging Improvements

As battery density continues improving thanks to research innovations, newer model year Teslas should offer incrementally faster charging speeds, lower charging times, and extended range. However, range estimates haven’t always translated perfectly to EPA confirmations.

Cybertruck specs in particular indicate a driving efficiency of just over 1 mile per kWh compared to over 4 miles per kWh for the Model S. Very large and non-aerodynamic trucks consume more energy counteracting real-world range. Interested buyers should wait for final range ratings before building purchase plans around estimated specs.

Build Quality Considerations

Tesla isn’t always known for flawless production quality, especially on new model launches. Early runs of the Model Y suffered paint defects, gaps between body panels, and subpar interior finishing. However, Tesla has proven they can quickly iron out issues and ramp up sophistication. Still, waiting 6-12 months into any new models manufacturing provides insurance against first-adopter quality control issues. Consider cost tradeoffs if wanting the latest and greatest immediately.

Why U.S. EV Battery Production Must Grow

As part of improving sustainability, U.S. policymakers finally recognize the importance of increasing domestic EV battery production and raw material sourcing. Currently, China controls over 75% of global cell manufacturing with sophisticated battery innovations. Ramping up American supply chain capacity reduces dependence on foreign sources for the batteries that make EVs possible and capture more economic benefits locally.

The recently passed CHIPS Act and Inflation Reduction Act both allocate billions towards advanced battery technology research, supplying raw materials needed for production like lithium and nickel, building new manufacturing plants countrywide, and more.

Multiple startups and established automakers are moving quickly to take advantage of these incentives and directed investment to localize more of the EV ecosystem rather than exporting jobs abroad. For those looking to enter the green energy space either as an investor or employee, the EV sector will present tremendous opportunities over this decade as next-generation infrastructure gets built out nationwide. Supporting companies focused on domestic production supports the growth of American jobs while doing your part for the environment.

Luxury EV Competition Heats Up

For affluent drivers less sensitive to price, Tesla still leads the pack when it comes to range, charging network access, interactive displays, and advanced self-driving tech. However, traditional luxury brands are rolling out ultra-high-end EVs if your budget accommodates a $100k+ vehicle.

The Mercedes EQS brings signature comfort and refinement with 419 miles range and rapid charging. The Audi E-Tron GT emphasizes sporty performance including a 637 HP variant hitting 60 mph in 3.1 seconds. BMW’s i7 offers 31” theater screens, reclining rear seats, and automated doors punctuating the interior elegance you’d expect.

Most recently unveiled was the first-ever electric Maybach hitting the market in 2023 – the Mercedes-Maybach EQS SUV. With seating for just 4 passengers, rear seats fully reclining, retractable footrests, tray tables, and an included refrigerator, no expense was spared to deliver opulent luxury. Priced at $180,000, it aims to be the pinnacle of lavish sustainable transportation aligned with Maybach’s brand position.

For those less compelled by the tech-driven minimalism synonymous with Tesla, 2024 ushers in more options catering to premium high-end expectations. Test driving alternatives could provide useful comparisons before locking in your purchase.

With game-changing policy updates intertwined with Tesla’s product roadmap, 2024 represents an extremely compelling timeframe for getting your hands on one of today’s most cutting-edge electric vehicles. The reintroduction of the $7,500 federal tax credit as an upfront discount coinciding with fresh models addressing more consumer segments tips the value proposition further in favor of buyers.

As battery expertise matures in coming years alongside Tesla’s lineup, you’ll have peace of mind around maximizing range, charging speed, high-end interior quality and luxury features before taking delivery of the keys. With plenty still left unknown around Cybertruck capabilities, pricing adjustments to stay ahead of rival EVs, and introduction of the hotly anticipated Model 2, a little patience will pay major dividends.

Stay plugged into the latest EV developments and incentives landscape throughout 2023. But once 2024 arrives, the long wait will undoubtedly reward those craving exhilarating and sustainable Tesla performance for years to come.