February 23, 2018
Time is running out for Tesla buyers to get a $7,500 federal tax credit with their purchase.
In an SEC filing early Friday, Tesla said it expects that the federal tax credit for its customers will end at some time in 2018.
The credit for each automaker ends a few months after they sell 200,000 plug-in cars the United States. Tesla, which only makes electric cars, sold about 300,000 vehicles worldwide through the end of last year. And it looks like it will be the first automaker to hit the 200,000 mark in the U.S. this year.
Shoppers who buy plug-in vehicles from most other automakers, such as Toyota (TM), Nissan (NSANF) or Ford (F), will continue to get the credit until those manufacturers hit 200,000 in U.S. sales.
The loss of the tax credit will significantly increase the cost for buyers and could hurt demand. Tesla (TSLA) started deliveries of the Model 3 last year, its first mass market vehicle with a starting price of about $35,000, and it has orders and deposits for more than 500,000 of the cars. But buyers don't get the tax credit until they take delivery of the car, and the Model 3 has run into production bottlenecks. As a result, Tesla only delivered 1,764 of the cars through the end of last year.
So only a small fraction of Model 3 buyers will be able to get the tax credit, and some may decide to back out of the purchase if they don't qualify. They have all put down a $1,000 deposit, but it's refundable.
Given the waiting list, no one who orders a Model 3 today will be able to get the tax credit. Those ordering a Model S or Model X may qualify, but those are much more expensive cars that can cost more than $100,000. Waiting time for those models is generally two to eight weeks, according to Tesla's web site.
The fact that the credit will run out for Tesla buyers does not come as a surprise, but this is the first time that Tesla has given a time frame for when it expects the tax credit to end.
The Tesla filing also disclosed that the company added 7,500 employees last year, a 25% increase in staffing levels that brought its total employment to 37,500. That came as the company ramped up production at both its California assembly plant and at two "Gigafactories" making lithium batteries in Nevada and Buffalo N.Y.
Tesla declined to comment on the loss of the tax credit, or its hiring, beyond the statements in the filing.
Most other automakers are nowhere near that 200,000 vehicle limit. For example Nissan has sold 115,000 of its all-electric Nissan Leaf, which went on sale in 2010.
But General Motors (GM), which has sold more than 160,000 cars that qualify for the credit, could soon reach that 200,000 limit, perhaps as soon as the end of this year. It sold 23,000 of the all-electric Chevrolet Bolt last year, as well as 20,000 of the Chevy Volt, a plug-in hybrid that can run on gas or electric and also qualifies for the credit. Sales of the Volt have fallen as the Bolt has become more available.
Latest News
Top news around the world
Academy Awards

‘Oppenheimer’ Reigns at Oscars With Seven Wins, Including Best Picture and Director

Get the latest news about the 2024 Oscars, including nominations, winners, predictions and red carpet fashion at 96th Academy Awards

Around the World

Celebrity News

> Latest News in Media

Watch It
Ruby Franke’s Husband REVEALS Alleged Rules He Had to Follow at Home | E! News
March 28, 2024
_mU-3lE2QwI
#KenanThompson speaks out following the #QuietonSet documentary. (🎥: Tamron Hall Show) #shorts
March 28, 2024
8AGP-Gfw_Ek
King Charles Shares "Great Sadness" at Missing Royal Appearance | E! News
March 28, 2024
lyizFqf1kQY
Martha Reeves Walk of Fame Ceremony
March 27, 2024
QzyezumEPtQ
Eminem, 50 Cent & Snoop Dogg Present Dr. Dre with a Star on the Walk of Fame
March 19, 2024
4bNLs1hxVp8
Opening Remarks for the Variety Summit October 20th, 2023 Jay Penske
March 18, 2024
c6Z707iLq8E
Montell Jordan Dishes On Young MC Wedding, 'This Is How Date Night' Plans | TMZ
March 28, 2024
G3SMExj-qio
Davina Potratz Says TV Not Helping 'Selling Sunset' Relationship Woes | TMZ
March 28, 2024
D4piy4GNm4k
Logan Paul Rips Graham Bensinger Over Documentary, You Promised Apple TV+ | TMZ Live
March 28, 2024
NiSDpZhZklQ
Prince William pinned royal medal to Spice Girl Mel B’s boobs #shorts
March 28, 2024
O1cQ0UW9pco
Jennifer Garner shares ‘hard’ part of raising her and Ben Affleck’s kids
March 28, 2024
3Q7mZaVUdgc
50 Cent's ex Daphne Joy named as an alleged sex worker in Sean ‘Diddy’ Combs lawsuit #shorts
March 28, 2024
yhLFI8DG9rM
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
28
Mar
CHAMPIONS LEAGUE: Playoffs - Women
PSG W - Hacken W
28
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Barcelona W - SK Brann W
27
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Chelsea W - Ajax W
27
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Lyon W - SL Benfica W
17
Mar
SPAIN: La Liga
Atletico Madrid - Barcelona
17
Mar
ENGLAND: FA Cup
Manchester United - Liverpool
17
Mar
ITALY: Serie A
Inter Milan - Napoli
17
Mar
GERMANY: Bundesliga
Borussia Dortmund - Eintracht Frankfurt
17
Mar
ENGLAND: FA Cup
Chelsea - Leicester City
17
Mar
ITALY: Serie A
Roma - Sassuolo
17
Mar
ITALY: Serie A
Verona - AC Milan
17
Mar
ITALY: Serie A
Juventus - Genoa
16
Mar
GERMANY: Bundesliga
Darmstadt - Bayern Munich
16
Mar
ENGLAND: FA Cup
Manchester City - Newcastle United
16
Mar
ENGLAND: Premier League
Fulham - Tottenham Hotspur
16
Mar
SPAIN: La Liga
Osasuna - Real Madrid
13
Mar
CHAMPIONS LEAGUE: 1/8 Final
Atletico Madrid - Inter Milan
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Barcelona - Napoli
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Arsenal - Porto
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.