So you own it technically, but they're obligated to buy it back after 36 months. Since you own it technically, you get the federal/state tax benefits.
Seems like this whole scheme will unravel as soon as those tax credits die out, which they will.
Seems like this whole scheme will unravel as soon as those tax credits die out, which they will.
I've seen some people saying that these subsidies are unfair, but the US government heavily subsidizes gas too.
Some very rough calculations put the average gas subsidies paid by the US government around $4350 per driver per year.
I dislike subsidies in general, but it's too bad the credit will phase out sooner rather than later. Getting plug-in electrics on the road will save the US tons of money on gas subsidies.
--------------
1.49 gallons/driver/day * 365 days * $8/gallon subsidy = $4350.8/driver/year
Gallons/day: http://en.wikipedia.org/wiki/Gasoline_and_diesel_usage_and_p...
Using an $8 subsidy based on some quick googling, which places the true cost of gas in the US from $12-$15/gallon. Assuming an average price of $4/gallon, that puts a conservative estimate of the subsidy per gallon around $8.
Federal credit phase out info: http://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credi...
http://www.progress.org/gasoline.htm
This article at $12.75 from May 2011:
http://www.triplepundit.com/2011/05/increasing-gas-prices-su...
Subtracting the $4 price of gas is what brought me to $8, conservatively. To be fair, some of the price paid at the pump is tax, but according to the previously linked wikipedia article that's 12%, so $0.48 for a $4 gallon.
Presumably Musk is anticipating that most buyers will like the Model S enough to not sell it back; if reality lines up, Tesla comes out far ahead. If not, they're doomed, but this scheme would really only be accelerating their demise in that case.