Tesla announces only orders placed by Oct. 15 will be eligible for full $7,500 tax credit

Tesla Model 3 or Model X, it’d be best to make a decision this weekend. The all-electric automaker has announced that only orders for its cars placed by Oct. 15 will qualify for the full $7,500 tax credit and be delivered by the end of the year.
The loss of the full credit comes as a result of Tesla reaching 200,000 in vehicle sales this past July. Federal law states that buyers receive the full credit until electric car manufacturers reach this impressive milestone, after which begins an 18-month phase-out process. While all vehicles delivered by December 31st are eligible for the $7,500 credit, it drops by half to $3,750 starting Jan. 1, then again on July 1 to $1,875 before disappearing altogether at the end of 2019.

Tesla customers most likely to be disappointed by the news will be those interested in a base version of the Model 3. The company announced it would be selling a $35,000 car back in 2016, but continues to sell more expensive versions of the EV at $49,000 and up. According to Tesla’s website, the standard battery Model 3 will not be available for another three to six months.
The evaporation of Tesla’s tax credit also puts the company at a disadvantage to a number of larger luxury automakers, including Mercedes-Benz, BMW, Audi, and Jaguar, whose upcoming or recently released electric models are hitting showrooms with the full tax credit.
While we’d definitely recommend prospective buyers to make their move by Monday, we can’t help but be slightly skeptical about Tesla’s pledge for all deliveries being made by the year’s end. The company has been notorious for having struggles in that department, particularly with the Model 3.

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