Tesla Delivers 200,000th Car In US, Triggers Federal Tax Credit Phase Out

Tesla announced it has delivered 200,000 cars in the US market, reaching a sales mark that triggers the phase out of the $7,500 federal tax credit.

This means that, for vehicles delivered from 2019, the incentive will be reduced by 50 percent every six months until it is ceases completely. Customers who’ll take delivery between January 1 and June 30 will receive a $3,750 tax credit, while from July 1 to December 31 the incentive drops to $1,875.

Buyers taking delivery of a new Tesla before December 31 of this year are still eligible for the full, $7.500 tax credit.

Tesla has become the first manufacturer to cross the 200,000-unit threshold, with General Motors being next in line. Nissan and Ford are the next closest to hitting the mark, but are estimated to still be years away from triggering the phase-out.

There have been some reports about the possibility of expanding the EV tax credit, but nothing so far points at that direction.

Tesla’s EV tax credit phase-out is expected to have a negative impact on future customers that wait for the entry-level, $35k Model 3.

The base version of the Model 3 isn’t expected to arrive in the market before 2019, and that means that it will have to face stiffer competition from rivaling models that are going to be still eligible for the full tax credit.

more photos...
  • Ronald Roman

    The end is near, Elon…
    One of the main reasons people were considering Tesla was the discount. Sure…save the planet and the whales…but $7500 at tax time was sweet.


    • Dude

      It’s not like Tesla didn’t have a head start. Ergo, not impressive… at all.

France Will Invest $790 Million In Battery Industry To Reduce Reliance On China

President Emmanuel Macron is wary of trade wars and wants the French industry to become independent .

Mercedes To Expand Plug-In Hybrid Range To 10 Models By End Of This Year

Models like the A-Class, the GLC, the GLE, and more will get a PHEV powertrain option within 2019.

Vicious Texas Drainage Holes Still Claim SUVs, Trucks And Amazon Vans

These holes have been a hazard for quite some time, but local authorities haven’t gotten around to fixing them.

Should Kahn Build A Pink Lamborghini Urus Or Go For Purple?

Kahn’s founder took to social media to ask whether they should go ahead with the pink Urus project.

Woman Who Can’t Get A Deal On New Car Gets Free Scion From A Total Stranger

The woman could believe this random act of kindness.

2019 Chevy Silverado Is The First-Ever Truck To Pace Daytona 500

Dale Earnhardt Jr. will lead the pack driving a bone-stock Silverado powered by a 420hp V8.

2020 Kia Soul EV Gets 243-Mile Range Rating From EPA

The 2020 Kia Soul EV beats most of its rivals, like the Nissan Leaf E+ and Chevy Bolt.

Would You Pay $55,000 For This Well-Kept 1991 BMW M5?

The car is finished in Brilliant Red and has a grey leather interior with the optional Executive Seating package.

Tire Shop Totals Couple’s BMW, Still Forces Them To Pay

After totaling the car, the shop demanded the owner pay them nearly $1,400.

40 Countries, But Not The U.S., China And India, Agree Cars Must Have Standard Automatic Braking

Japan and the EU will be the first to mandate the use of advanced Emergency Braking systems.