Tesla Cybertruck Could Cost You Absolutely Nothing, Here's How

Even though the design is divisive and the specs a mystery, the first production-ready Cybertruck to ever come off the assembly line at Giga Texas has generated quite a frenzy online. Over 48 million people have seen the company's tweet announcing the much-anticipated manufacturing start. But things may get even more interesting soon enough.

Today's estimates say that 1.8 million pre-order holders await their shot at speccing a Cybertruck. Many Rivian R1T, Chevy Silverado EV, and Ford F-150 Lightning existing or prospective customers are among them. If Tesla wants them to give up on these alternatives, it must move quickly to lock in their orders. And if it happens precisely like the initial announcement, some of America's most well-known auto brands face a perilous future.

Originally, the Cybertruck's cost was supposed to start at $39,900 for the rear-wheel-drive, single-motor unit with around 250 miles (400 kilometers) of range. Making it all-wheel drive would have added $10,000 to the price tag. Putting the tri-motor Plaid setup on the all-electric pickup truck would have incurred customers a financial dent of $69,900, which may be why Tesla says it can go from a standstill to 60 mph (97 kph) in 2.9 seconds.

Since there is no middleman involved, the above values should not fluctuate because of greedy markups. The only extras would probably be color options, wheels, accessories, and advanced driver-assistance software.

A fantastic opportunity

It's also possible for Tesla to introduce a pricing policy centered around various battery pack options. After all, the world's most valuable automaker still says the vehicle will have "up to 500 mi of range."

But let's look at the cheapest Cybertruck and how you could pay nothing for it.

According to current EV tax credit rules (which will change in 2024, see below), the pickup truck could be eligible for the entire federal incentive of $7,500 because it's priced at under $80,000. Even though it is not a rebate applicable at the point of sale, offsetting a part of what you owe Uncle Sam in exchange for moving to a zero-tailpipe emission lifestyle remains a good idea. Also, keep in mind that you must qualify for this federal perk. As such, the price of the Cybertruck RWD can drop to $32,400.

Some states have EV incentives of their own. Famous in this respect is Colorado for its $5,000 refundable tax credit, which means that if you don't owe the state at least $5,000 in taxes, the excess will be returned to you. Thus, for some Americans, like those living in Colorado, the single-motor Cybertruck can have a starting cost of $27,400.

But wait, there's more! The Cybertruck's weight has yet to be confirmed, but it is estimated at around or over 6,000 lb (2,722 kg). It will mostly depend on the battery pack, but armored glass isn't known for being lightweight, either. Elon Musk also said that Tesla's first pickup truck could be equipped with a solar power tonneau cover that generates 15 miles of range per day, "possibly more." He even talked about fold-out solar wings!

But what matters to us here is Section 179 and its deduction rules. The "equipment" (which, in this case, is the Cybertruck) must have a gross vehicle weight rating (GVWR) between 6,000 lb and 14,000 lb. If you use it for work purposes more than 50% of the time, you can deduct up to $28,900 in the first year. This is one of the reasons why the G-Wagen is so popular in the US.

Thus, the Cybertruck RWD can cost you nothing after one year of ownership. Of course, that's only possible if you meet all the qualifying requirements and can use the vehicle as the Internal Revenue Code dictates.

Moreover, it might be available only for customers lucky enough to take delivery of a unit in 2023. Next year, the federal EV tax credit rules will change, making life harder for automakers who source their battery minerals from countries like China.

Besides turning the federal EV tax credit into a fiscal advantage applicable at the point of sale (meaning you can get a $7,500 discount right in the showroom or online), the rules state that batteries must comprise at least 50% minerals mined in North America (Mexico included) or a free trade US-partner minimum. Moreover, at least 60% of the battery components must be produced in North America.

A reality check is in order

Sadly, it's doubtful that the single-motor Cybertruck will have a starting cost of $39,900. Inflation, Federal Reserve interest rate hikes, parts shortages, and weird profit strategies like bottlenecking supply to create artificial scarcity have all led to cars and trucks costing much more than they used to.

A strong indication that Tesla's pickup truck might not start from $39,900 is that the Model Y – whose underpinnings are apparently shared with the Cybertruck – currently has a minimum price of $47,740. Some anticipate the brand-new pickup truck to have a pre-sales tax cost of $49,900, but it might even be higher.

But even if the price is $10,000 more, all the incentives will still make the Cybertruck RWD attractive. That's especially true when you consider its status and that many people wait to see it put to work. For a couple of internet-savvy people, the EV may even become a money generator through various types of content uploaded online.

But the same fiscal advantages apply to the Ford F-150 Lightning or Chevy Silverado EV. Unless you're gunning for a very well-specced Rivian R1T, this one can also join the other two.

Ultimately, we'll have to wait for Tesla to release the official pricing and specs. Hurry up, Elon Musk! It's long overdue.

If you want to figure it out the Section 179 stuff yourself, use this calculator and determine the deductions you can take advantage of.