Crowds line up to place deposits for unseen Tesla

Hundreds lined up early this morning outside the Tesla electric car showroom in Seattle’s South Lake Union. Eventually the line stretched three blocks as buyers waited to place a $1,000, fully refundable deposit on the new Tesla Model 3.

Leann Van Alastine said it took her four hours to get to the showroom door. “This is going to be the car that's going to change the face, it's going to make electric cars more widespread.”

No one in line had seen the Model 3, because Tesla wasn’t scheduled to unveil it until 8:30 p.m. Thursday.

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Many think it might look like a smaller version of the $70,000 Model S that's already on the streets. Only the new Model 3 will start at just $35,000, and still run for 200 miles on a charge.

“I've been waiting for this car since the Model S first came out,” said Brian Boyd of Tacoma. “I wanted to get a Model S but couldn't afford it like most people.”

We found buyers had studied the state and federal tax breaks for which they might qualify.

“You get a federal tax credit of $7,500, and if they keep it under $35,000 in this state there's no sales tax. If it is over $35,000, you pay the entire sales tax,” said Michael Huber.

Which adds roughly 10 percent to the price. But that won't necessarily deter the people we saw in line. When the sales tax break for more expensive Teslas was eliminated last year, sales doubled anyway.

Todd Myers is environmental policy director for the Washington Policy Center.

“Giving sales tax breaks primarily to wealthy people, especially when you are taxing the working class, just doesn't make a lot of sense either economically or for the environment,” he said.

Cox Media Group