At what point in meiosis do cells become haploid?

Cells become haploid following telophase 1 of meiosis, not telophase 2. The function of meiosis 1 is to separate logous chromosomes from their tetrads and produce two cells, each of which contain a haploid number of replicated chromosomes. Meiosis 2, on the other hand, simply separates the replicated chromosomes to give a net of 4 haploid cells with non-replicated DNA.