Tesla says order by Monday to get full $7,500 tax credit

Lloyd Doyle
October 16, 2018

Tesla in July said it had delivered 200,000 electric cars in the US, which means the tax credit will begin to shrink for Tesla buyers after October 15.

Electric carmaker Tesla Inc said all orders for its vehicles placed by October 15 are eligible for full federal tax credit of $7,500 and such customers will get their cars delivered by the end of the year. "They simply want a Tesla".

The $7,500 tax credit was meant to spur people into buying more electric vehicles-but only to a point. Tesla confirmed to Business Insider in July that it had passed the 200,000-vehicle threshold.

Electric carmaker Tesla Inc (TSLA.O) said http://bit.ly/2NCbs1r orders for cars placed by October 15 will be eligible for a full federal tax credit of $7,500 and these customers will get their cars delivered by the end of the year. 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. It should be noted that while Tesla is the first USA automaker to hit the 200,000 EV mark, General Motors and Nissan are not far behind.

Vehicles have piled up in lots around California awaiting transport, and Musk said last month that Tesla had moved from "production hell to delivery logistics hell".

Tesla customers who take delivery between January 1 and June 30, 2019, will receive a $3,750 tax credit and those who take delivery between July 1 and December 31, 2019, will receive $1,875.

Tesla set its order deadline for Monday, Oct. 15, to allow lead time to ensure customers' cars are delivered by the end of the year.

Buyers of electric cars get full tax credit for the quarter in which the company hits the 200,000 delivery mark and the next. General Motors is expected to reach it next, with that GM will hit the limit either this quarter or early next year.

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