Tesla Buyers to Lose $7500 Tax Credit; Deadline Is October 15

  • Tesla Buyers to Lose $7500 Tax Credit; Deadline Is October 15

Tesla Buyers to Lose $7500 Tax Credit; Deadline Is October 15

Back in July, Tesla to sell 200,000 plug-in electric vehicles in the United States.

Consumers who wanted to apply a full federal tax credit to buying a $35,000 Tesla Model 3 sedan appear to be out of luck. "They simply want a Tesla". Final delivery is contingent on the buyer's payment of the full purchase price of the vehicle through leasing, financing, or paying cash (the $2500 deposit is credited toward the final purchase).

When Tesla crossed the 200,000 threshold in July, it started the clock on an 18-month phase-out process. The EV tax credit for General Motors will gradually be phased out this year as well. Then on July 1 it will drop in half again to $1,875, before going away altogether at the end of the year.

Though the full tax credit will most likely technically exist for orders placed past October 15, Tesla is clearly trying to avoid backlash by warning customers ahead of time that cars ordered after that date may not be delivered in time to qualify for the full incentive. The bill recently proposed by Wyoming Republican John Barrasso would not only end the credit, but would impose an additional federal tax on electric cars. Readers will remember what happened in Ontario in July when Progressive Conservative Premier Doug Ford canceled the province's cap and trade program - leaving Tesla buyers owing $14,000 extra on their new Teslas. At the end of June, to meet its self-imposed goal to manufacture 5,000 Model 3 cars per week.

Tesla already has a strong incentive to deliver a lot of cars before December 31 to improve its fourth-quarter financial results. Nissan, which sells the Leaf EV, will be the next manufacturer impacted.But Tesla is facing an array of new competitors launching long-range battery-electric vehicles, or BEVs, that should be able to continue offering full tax credits for some time.

So far, no other carmaker has announced that it has reached the cap.