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. On January 1, the credit will drop in half to $3,750.
As we reported back in July, Tesla's near-iconic $7,500 electric vehicle tax incentive will soon be on its way out.
That rule allows Tesla to give out full tax credit on each auto 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.
Tesla has scrambled to deliver the Model 3 - a mass-market sedan that it hopes is the key to success - and many customers have been waiting since early 2016. Last quarter, Tesla sales beat Mercedes Benz for the first time in the U.S. But in the meantime, the delivery timing is important when buying a new Tesla. At the end of June, to meet its self-imposed goal to manufacture 5,000 Model 3 cars per week. With the factory in Fremont, CA rolling out more than 6,000 vehicles a week, Tesla is racing to fulfill a backlog of initial reservations, along with new orders.Tesla Model 3s and X's are shown charging in an underground parking lot next to a Tesla store in San Diego, California on May 30, 2018.Mike Blake / Reuters fileDuring the third quarter alone it delivered twice as many of its new Model 3 battery-sedans as it had during the first six months of 2018.That drove total USA sales to almost 70,000 vehicles for the July to September quarter, helping it leapfrog Mercedes-Benz which delivered just under 67,000 vehicles during the same period.
Tesla already has a strong incentive to deliver a lot of cars before December 31 to improve its fourth-quarter financial results.
In July, Tesla announced it delivered 200,000 vehicles to customers, meaning it has hit the full tax credit threshold.