Tesla Models Hit Cut Off For Full $7,500 Government Rebate

If you’ve been on the fence about ordering a new Tesla, your indecision could cost you as the company’s fleet of electric vehicles is no longer going to be eligible for the full $7,500 federal tax credit in the United States.

As a result of a law passed last year, the tax credit will be reduced once an automaker sells 200,000 electric vehicles. Tesla hit the mark in July, but Reuters notes the rebate reduction doesn’t kick in instantly and all vehicles delivered by the end of the year will remain eligible for the full rebate.

However, Tesla set a deadline of today (October 15th) for orders to be placed so that vehicles will arrive before the end of the year. Since the rebate will be reduced by 50 percent every six months, customers who take delivery of a new Tesla beginning in January will only receive a credit of $3,750. Six months later, in July of 2019, the rebate will only be worth $1,875.

Unfortunately, the full rebate won’t be available to customers who could likely use it the most – buyers of the entry-level Model 3. The car is slated to start at around $35,000 which means the full $7,500 rebate would have effectively lowered the price to $27,500. However, the entry-level Model 3 has been continuously delayed and Tesla’s timeline shows the car isn’t expected to be available until next year.

The delay could damper future Model 3 sales as competitors such as the Chevrolet Bolt and Nissan Leaf are still eligible for the full tax rebate. Tesla doesn’t just have to worry about low end sales either as the rebate reduction comes at a time when Audi, Jaguar and Mercedes are taking aim the Model X. Porsche, on the other hand, is going after the Model S with the Taycan.

  • Dr Bjorn K. Von Strangefingger

    Multiple threats on various levels (Oh, and debt, and no profit, higher expenses, fire truck collisions…)… will Tesla survive?

    • lagunas3ca

      Rhetorical question if you don’t live under a rock.

  • lagunas3ca

    Joke of a law that gives an advantage to every auto manufacturer that benefits off of the billions of dollars that Tesla, lead innovator of EV technology, puts into R&D etc. There is a reason why Tesla outsold Mercedes-Benz in Q3 and will by eyeing BMW’s sales numbers this quarter. This law will soon be repealed.

    • Dr Bjorn K. Von Strangefingger

      Tesla also invented electricity. And the internet.

    • Mr. EP9

      Someone sounds butthurt. How is the law a joke? It applies to every manufacturer that hits the 200k vehicle mark for EVs.

    • Rocket

      You forgot to mention the billions U.S. taxpayers have contributed to that R&D, which to this point has primarily benefitted those wealthy enough to afford a Tesla. Plus Musk himself, of course. Regardless of what happens long term, Elon still walks away a wealthy man.

      • IT’S A TAX DEDUCTION NOT THE GOVERNMENT HANDING OUT CHECKS TO THE RICH. REMEMBER OUR ILLUSTRIOUS PRESIDENT TOLD THE WORLD HE DIDN’T PAY HIS FARE SHARE OF TAXES “BECAUSE I’M SMART”.

        • Rocket

          First of all, I’m talking about the billions in federal subsidies Tesla has received over the years. Second, the $7,500 is not a deduction, but a tax credit. Not even close to the same thing. Nearly every Tesla owner received a $7,500 contribution from Uncle Sam. Considering the median salary of Tesla owners, all tax payers should be pissed.

  • Mr. EP9

    For those that ordered before Oct. 15 they’ll still get the full rebate everyone is SOL.

  • danno

    Lets the tesla fan bois pay full pop for their purchase. Not sure why taxpayers should be paying for EV purchases. Quite ridiculous on what is priced as a high end vehicle for the S and X.

    • ➡️ProtectOurHeritage⬅️

      Absolutely spot on.

  • Arthur Burnside

    Tesla’s “advanced technology” isn’t very advanced these days – VW group and Porsche EVs can recharge more than twice as fast , have greater driving ranges, etc. Jaguar and Audi can recharge as fast and have gerater driving ranges and costs tens of thousands less than the very overpriced Tesla vehicles. The Jaguar I PAce consistently gets better reviews than the unreliable Tesla Model X and costs WAYYY less. Only the EV uninformed think Tesla has provided any technology that every other automaker can easilly produce. Tesla fans are out of touch.

    • FUNNY THING IS WHEN A PROBLEM ARISES TESLA COMES UP WITH A SOLUTION, QUICKLY. PROBLEMS WITH THE BATTERY, TESLA RETROFITS. NEED AN SOFTWARE UPDATE, TESLA SENDS IT OVER THE AIR. NEW FEATURE, TESLA TESTS IT THEN SENDS THAT OVER THE AIR TOO. WHINE ABOUT TESLA ALL YOU WANT BUT WHEN YOU’RE SITTING IN YOUR ELECTRIC WHATEVER IN TEN YEARS REMEMBER IT WASN’T GM OR FORD OR MERCEDES THAT DID ALL THE LEG WORK. NO DOUBT TESLA WILL FIND A WAY TO RECHARGE FASTER JUST LIKE THEY DID WITH INSANE AND LUDICROUS MODE.

  • ➡️ProtectOurHeritage⬅️

    More and more countries are thankfully seeing sense. Why should hard-working taxpayers be forced to pay for someone else’s laughable car purchases.

  • I’M NOT CLEAR ON WHAT POINT YOU’RE TRYING TO MAKE. IF YOU OWE LESS THAN $7500 YOU DON’T GET ANY CREDIT. LIKE I SAID I’M NOT A TAX EXPERT BUT THE GOVERNMENT ISN’T SENDING CHECKS TO PEOPLE WHO BUY ELECTRICS.

    • Rocket

      You are wrong. You have a fundamental misunderstanding of the tax credit. It’s not what you owe at tax time, but your total annual tax liability on the year in question that matters. If you are flush on your taxes on April 15 and purchased an EV the previous calendar year, you absolutely will receive a $7,500 check from the fed if your total tax liability was greater than $7,500 for the year. That would be nearly everybody who can Purchase a Tesla.

      • I WILL TAKE YOUR WORD ON THE TAX SITUATION. THE WHOLE IDEA WAS TO ENCOURAGE ELECTRIC CARS NOT JUST TESLA’S. I PERSONALLY DON’T CARE IF PEOPLE ARE GETTING CREDIT FOR BUYING AN ELECTRIC CAR GIVEN HOW PEOPLE SCHEME NOT TO PAY THEIR FAIR SHARE. AT LEAST THIS HAS A BENEFIT TO SOCIETY.

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