Tesla, Cybertruck, Taxes, and the stock

CyberTruck

Hello, some boring stuff out of the way. This is not legal, tax, accounting, investment advice by any means whatsoever, and please speak to a licensed professional in your jurisdiction. Next to any pictures, mentioning Tesla and Cybertruck are fully the property and trademarks of Tesla Inc.

I think 2022 Tesla has to fully focus on the Cybertruck and it has to do with something really really boring and we all do not like a lot, Taxes! Section 179, check out www.section179.org for more information. So let's assume the Cybertruck is over 6,000 pounds (this is an assumption do not have weights yet) a business even a small business can write off the full purchase of the Cybertruck. So if we take the Tri-Motor Cybertruck and add FSD you are roughly at $80,000.00. So that the full $80,000.00 could be written off/deducted and saving of $16,800.00 at the 21% tax bracket. Now before you say Nice speak to your CPA and or financial advisor. The vehicle would need to be in the name of the business also.

Next, the full $80,000.00 can be written off via section 179 for 100% if used 100% of the time for business. Now if this Cybertruck is the only vehicle you will need to track and see is it 60/40 split or whatever. So if the Cybertruck is only used 60% of the time for business then can deduct 60% of the value. So section 179 is supposed to end at the end of 2022. Section 179 had a nickname in the back of the day as the Hummer rule. As a lot of business owners would by Hummers and expense them off via 179. So it is very unique a gas-guzzling car and yes I know the new Hummer will be Electric will help usher new technology and lower carbon emissions. It is truly the Circle of Life.

The Circle of Life

So 2022, Tesla has to move as many Cybertrucks as possible as Section 179 will be a great tool for it to even sell more Cybertrucks and customers wanting their CyberTrucks. If Tesla is able to focus on the CyberTruck which rumor has there are over 1 Million plus reservations will be able to move a lot of vehicles as the demand is there and the possibility of cancellations. I believe if more and more companies have a large of profits and need a vehicle, Tesla could even sell more Cybertrucks.

If Tesla is able to sell at least 300,000 Cyber Trucks in 2022 that will increase sales and profits and drive earnings to the bottom and increase the stock price which could have a major positive movement for the stock price.

So in recap Section 179 can be a major driver for volume purchasing in 2021 and 2022. Would love to hear your comments and questions below. All the best.

May the Plaid be with You!