Tesla has hit the federal tax credit threshold, triggering phase-out

by Denis Gurskiy

Tesla has finally confirmed that it has hit the 200,000 US delivery threshold, which has started the phase-out of the $7,500 federal tax credit.

Tesla buyers will now have the full $7,500 tax credit until the end of the year, then they hit $3,750 for the first half of 2019 and lastly $1,875 for the second half of 2019.

People have speculated that Tesla would try to push the 200,000th delivery somewhere to the beginning of the third quarter so that customers could get as close to two full quarters of the full tax credit as possible.

For those that don’t know the phase out period allows for the $7,500 credit to be active for the remainder of the quarter that the 200,000th delivery was achieved, plus one more quarter. So its in the benefit of the manufacture to time their delivery as close as possible to the beginning of a quarter to maximize the amount of time the full tax credit is active.

Tesla has now added the warning of the phase-out on its EV incentive support page.

GM and Nissan will now be the two to watch out for as most likely they will be the next to hit this threshold.

There is a bill trying to be passed to change the delivery limit for the federal tax credit and instead change it to a time limit. The possibility of it being passed seem to be low, but it is definitely something to look out for.

With this threshold being reached, it will make potential Tesla buyers to make some decisions. Perhaps there were some that were waiting for the standard range Model 3 with the full rebate, but now will turn somewhere else. But also this might panic some other buyers of standard range Model 3 who might not want to spend the extra cash on the extended range, but also don’t want to miss out on the credit.

What do you guys think? How will the start of the phase-out effect Tesla’s sales? Let us know down in the comments below.


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