New Tesla orders will miss out on $7,500 federal tax credit

In the US if you order a Tesla Model 3, Model X or Model S you’ll now miss out on the US$7,500 federal tax credit, instead you’ll only get US$3,750.

That’s because the US government’s generous federal tax credit scheme, designed to encourage car makers to build electric cars, phases out over two quarters once an automaker sells over 200,000 electric cars.

Tesla crossed the barrier in July, so people who purchase and receive their vehicles by December 31, 2018 will get the full US$7,500 tax credit.

The company advertised an October 15, 2018, cut off date on its website for new orders to qualify for the full tax credit, but due to overwhelming demand, it took down that date, presumably because its order book for the rest of the year was full.

For cars delivered in the next two quarters (January 1 to June 30, 2019) Tesla buyers will receive a US$3,750 tax credit, while Teslas delivered in the remaining two quarters of 2019 (July 1 to December 31) will receive a US$1,875 tax credit.

After that, under current regulations, there will more federal tax credits for Tesla buyers.