Tesla Hits Milestone - Tax Credit Going Away

My Tesla just got a little bit more expensive.

According to Ars Technica, Tesla has now sold enough cars in the US that the $7,500 tax credit is starting to get phased out. Once Tesla sold 200,000 vehicles, the phase out period starts.

For the remainder of 2018, if you buy a Tesla and it is delivered before the end of the year, you can still get the full $7,500 tax credit. Teslas delivered in the first six months of 2019 are eligible for half of that tax credit or $3,750. Those delivered in the final 6 months of 2019, get half again, or $1,875. Cars delivered after that are no longer eligible. On the bright side, the remaining tax credits are now limited by time, not how many cars Tesla sells.

Individual states may still be offering tax incentives.

It will be interesting to see how much this will affect sales. I know the incentive is a big selling point. If buyers are looking for that tax credit, they might decide to buy a Model S or Model X rather than a Model 3, because the Model 3 deliveries have such a backlog. This will also put some pressure on Tesla to deliver cars as fast as possible before the end of the year. I know if my car was delivered on Jan 1, 2019, I would be pissed at Tesla for delivering one day late and costing me $3,750.