$7,500 federal tax credit for Tesla buyers to end Dec. 31

Tesla Inc. says its customers won't get the full $7,500 federal electric vehicle tax credit after Dec. 31.

The company says on its website that the credit on its vehicles will start to phase out next year.

Under , buyers get the full credit until a manufacturer reaches 200,000 in sales since the start of 2010. Tesla buyers will get the $7,500 this year, then the credit is cut in half and phased out by the end of 2019.

The announcement on Tesla's site means the company hit 200,000 in sales this month.

Losing the credit could hurt future sales. Tesla has over 400,000 people on a for its lower-priced Model 3 car. Some buyers may not be able to afford the cars without the .

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Citation: $7,500 federal tax credit for Tesla buyers to end Dec. 31 (2018, July 12) retrieved 3 June 2023 from https://phys.org/news/2018-07-federal-tax-credit-tesla-buyers.html
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