Tesla has confirmed a phase-out schedule for federal income tax credits, which now serve as a $7,500 incentive to purchase any of the company's electric vehicles. As Tesla wrote in an annual report filed with the US Securities and Exchange Committee in February, its customers get the full $7,500.
Tesla is the first USA carmaker to trigger the reduced federal tax credit for electric vehicles, a phaseout triggered by it sales of 200,000 vehicles in the U.S. That falls to 25% during the six months after that. The tax credit is then reduced by 50 percent every six months until it phases out.
Sales reports show that the company pulled out all the stops to avoid selling its 200,000th vehicle in the US until after July 1, to maintain the full tax credit for one extra quarter, by pushing more sales to Canada among other things.
Customers will still be eligible for the full $7,500 credit for vehicles delivered on or before December 31, 2018.
The clock is ticking for Tesla customers looking for incentives on their auto purchase.
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For example, a buyer today who purchases a Model 3 for $50,000 (representing a long-range battery, rear-wheel drive auto with the required Premium Package), would get a tax credit that will bring the effective price down to $42,500. The Model 3, which starts at $35,000, was created to broaden Tesla's customer base beyond the luxury segment and accelerate the pace of electric-vehicle adoption.
This recent filing stands as yet another sign that Tesla is well on its way to sustaining its production rate of 5,000 Model 3 per week this third quarter.
Tesla employees told the magazine they were forced to walk through raw sewage that had spilled on the factory floor over fear of causing production delays. "We have to keep the line going".
Tesla confirmed to Business Insider that it had passed the 200,000-vehicle threshold.
At the end of June, Tesla, as well as GM, was said to be very close to hitting the 200,000 USA delivery cap.