Rebates Are Unlikely Be There By The Time of Tesla Model 3 Arrival
What will you do if by the time of Tesla Model 3 arrival states run out of rebates and incentives and no federal rebate is available? California has already run out.
"I test drove a Model S this afternoon and the store manager showed me link that says the CA incentives ran out and those that are buying gets on a waiting list," wrote Dannie Boiz in Tesla's forum page. "He also pointed out that the MS 60 has been selling like hot cakes and based on the record year, it's possible that Tesla will be out of the incentives by the time the Model 3 comes out," he adds.
Indeed, in an article published on June 24 in LA Times, it reads that California’s electric-car rebate program, which has given incentives to many Tesla, Nissan LEAF and Chevrolet Volt buyers and put tens of thousands of electric cars on CA roads, is "running out of money."
It's not the lack of money
Since 2009 this rebate program has helped to put 150,000 electric cars on California roads. Now it's running out of money, but not because of the lack of money. Instead, the decision comes from "concerns over the long-term viability of the state’s cap-and-trade program," writes LA Times in the same article. California's cap-and trade program, which uses a market-based mechanism to lower greenhouse gas emissions, is a major source of funding in California’s efforts to combat climate change.
Now, what will happen to Tesla Model S, Model 3, Nissan LEAF and Chevy Volt sales and a wide-range EV adoption if rebates are cut in the short term. Would these car-makers lose a large chunk of sales? Would Tesla lose a large chunk of Model 3 pre-orders?