Tesla loses U.S. subsidies as it hits 200,000 sales mark
13 July, 2018, 16:55 | Author: Sammy Rose
When an automaker reaches 200,000 EV deliveries, the tax credits begin to phase out after one full quarter passes following the quarter in which the auto manufacturer has hit the 200,000-delivery mark.
Customers will still be eligible for the full $7,500 credit for vehicles delivered on or before December 31, 2018.
On Tesla's website, under its electric vehicle incentives page, it shows that as of January 1, the federal tax credit for anyone who purchases a new Model S, X or 3 will be reduced to $3,750 from $7,500.
The automaker has now sold a total of over 200,000 electric vehicles in the USA, which means that that the $7,500 federal tax credit that its cars have been eligible for will begin to phase out on January 1, 2019, when it drops to $3,750, followed by a further reduction to $1,875 on July 1 and its full elimination at the end of the year.
Tesla increased second-quarter deliveries to Canada and had a significant number of vehicles in transit at the end of June, which may have reflected an effort to delay reaching the 200,000 level to "game the tax credit", Loup Ventures analyst Gene Munster speculated on July 2. Today, though, a Tesla spokesperson confirmed to Electrek that it did, indeed, hit the 200,000 delivery point this month. Owners will be able to claim the full $7,500 federal tax credit for vehicles delivered through December 31, 2018. Starting next July, they will be able to get one-fourth the credit.
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