It’s a bad thing for folks who want to buy a Tesla in the future. However, it is a sign of a company turning the corner in a good way. Just a few weeks before the end of the year, Tesla reached the end of the lucrative $7,500 federal tax benefit for buyers. The rules say that just the buyers of the first 200,000 electric cars sold by each auto manufacturer are eligible for the full 75k amount. Post 200,000, the tax credit begins to decrease. Tesla hit the 200,000 mark in orders earlier this year. The tax credit will apply to cars delivered by New Year’s Eve.
Because of the deadline, Tesla set October 15 as the cutoff date for vehicle orders eligible for the full credit. However, the automaker clarified that it is possible to buy from established inventory and still get tax credit if the purchase is consummated by year’s end.
What’s Next for People Who Want to Buy a Tesla Next Year?
Deliveries beginning on January 1, will be eligible for a $3750 tax credit but deliveries starting July 1, of next year will see their credit reduced to just $1875. These numbers apply to the Model 3, Model S, and Model X.
This deadline will not affect the ongoing and typical ordering/delivery process for Teslas. According to the company, those who submitted their orders, accompanied by a $2500 deposit, by the deadline will receive the vehicle no later than Tuesday. Final delivery consists of the buyer’s paying the full price through financing, leasing, or paying cash. The $2500 deposit counts toward the purchase price.
Gildshire assumed the deadline would lead to a flood of orders late in the year, and so it turned out to be. In a late update, Elon Musk announced a new initiative. If a buyer made a good faith effort under the tax plan, Tesla would make up the difference. Therefore, if you ordered a Tesla with a bow for your Christmas, expect the car and the tax relief. Just the bow will be missing. Happy New Year.
Continue to follow Gildshire through 2019, as we keep an eye on Tesla and the electric car movement. We are your forward-looking online car magazine.