Tesla says all buyers get full $7,500 tax credit if ordered by October 15

Shane McGlaun - Oct 12, 2018, 8:25 am CDT
Tesla says all buyers get full $7,500 tax credit if ordered by October 15

In July, word was going around that Tesla had become the first EV maker to hit the threshold for units delivered that would prevent some from getting the $7,500 federal tax credit. Tesla is now saying that anyone who orders a new Tesla car before October 15 will be eligible for the full $7,500 tax credit. Tesla also promises that the cars ordered by that date will be delivered by the end of the year.

The loss off the tax credit after 200,000 units are sold was part of the tax overhaul passed in Congress last year. After 200,000 EVs are sold by automakers, the tax credit is cut by 50% with each vehicle sold every six months until it phases out completely. Tesla said it delivered its 200,000 cars to buyers in the US back in July.

The lack of a tax credit could give other EV makers a leg up in the US market as they lag well behind Tesla in deliveries. The reason Tesla is still able to deliver the full tax credit is that the IRS allows full credit to be given to buyers during the quarter it hits that 200,000-delivery mark.

That rule allows Tesla to give out full tax credit on each car it delivers by the end of the year and is the reason for Tesla promising full tax breaks for all buyers who order by October 15. That is Monday for those not keeping track and could prove to be a boost to sales at the end of the year for the automaker.

Tesla may have crawled its way out of production hell, but it is having a hard time delivering vehicles that are done and sold. Many of them sit in lots waiting to be delivered with CEO Elon Musk saying that the company is now in delivery logistics hell.

SOURCE: Reuters

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