I put down a $100 deposit to buy a Tesla Cybertruck in 2021. Here’s why, my thoughts on Tesla, and some of the potential tax advantages associated with buying the Cyber truck - enjoy! Add me on Instagram: GPStephan The Program I talk about: The YouTube Creator Academy:
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First, lets talk about the aesthetics - In terms of practicality, it makes sense: the car is designed for durability. The stainless steel exterior is designed to resist dents, impact, and protect its passengers.
As Elon Musk clarified on twitter, this type of stainless steel is so strong that it can’t easily be molded and stamped without literally breaking the machine, so building a car from flat shapes meant less work required - and less overhead cost to manufacture. There’s very little on the car to to mold, bend, and shape…instead, just stamp and cut pieces together, and then fold it into a truck.
In terms of the impressive reservation numbers, however - I do have my doubts, as much as I’m a fan of Tesla.
Here’s the thing: I placed my deposit on the Cybertruck because I felt a $100, fully refundable deposit was such a low barrier to entry to reserve a spot - and from there, I could decide 2 years from now whether or not this type of vehicle would be a viable purchase or not. If yes, great - I’ll get the car. If not, well..it was only $100, and I can get it back.
Although, I hate to be that guy…especially because I LOVE Tesla, and I also bought Tesla Stock at the same time I bought my Model 3…but I can’t help but think charging a $100 refundable deposit isn’t going to be the best measure as to how many of people will actually end up BUYING the car when it comes out.
I don’t say this to take away from the car…because I think it’s brilliant, and I’m a believer of Elon Musk. But, we can’t ignore that - on previous Tesla models…the deposit was much higher.
The Tesla Roadster has a $50,000 refundable deposit
The Model Y has a refundable deposit of $2500.
The Tesla Model 3 had a refundable deposit of $1000.
And when the Tesla Model X was first announced…the deposit ranged from $5000, all the way to $40,000 for a founders series.
And…then…with the Cybertruck…only $100.
With the Tesla Model 3, they received a whopping 232,000 deposits in the first day - each with a $1000 deposit.
For context…that’s equivalent to Tesla receiving $232,000,000….upfront…for a car that wasn’t even in production yet. So, that was pretty amazing, because $1000 is a pretty strong commitment to buy the car.
From that, however…it’s rumored that 25% of those people ended up refunding their pre-order:
So given that, one MIGHT assume that the refund rate for a $100 deposit might be SIGNIFICANTLY higher due to the low barrier to entry.
As far as tax advantages though, this could be good:
This is because It’s estimated that the car is going to be weighing in at over 6000 pounds, much like the Tesla Model X. And that means that it’s eligible for what’s called the Tax Code Section 179 deduction, with…wait for it…BONUS DEPRECIATION.
This is a deduction that applies to business owners who buy a car weighing more than 6000 pounds, and intend to use the car for MORE than 50% business use. This type of tax deduction means that heavy vehicles like this, classify as heavy machinery - and from that, section 179 says you can depreciate the car up to $25,000 in the first year.
Then, you have what’s known as “BONUS DEPRECIATION.” That allows you to potentially depreciate 100% of the vehicle you purchased in that SINGLE TAX YEAR.
And for me, that’s why I figured…why not…$100 deposit, I may as well just see what happens…and then, 2 years from now as more options and interior design become more clear, I can decide whether or not I’ll actually get one. Plus, I think a lot of other people are in the same boat, as well. They see it as an innovative, new design…it’s absolutely unique…it’s priced in line with more conventional automobiles…and $100 deposit is such a low barrier for most people just to place and then see what happens.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
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