Prospective Tesla Inc (NASDAQ:TSLA) owners are in a race against the clock to secure a big tax incentive on electric vehicles.
The $7,500 incentive, which is seen as a major selling point for the cars, seemingly won’t be available for too much longer. Electrek has more:
At this point, no one, even Tesla, knows exactly when the phase out period will start, since it starts when they hit 200,000 total deliveries in the US, but the company has the most insights into when that can happen and they are now using it to sell Model S to Model 3 reservation holders.
We have received several reports of Tesla salespeople from different Tesla stores in the US telling Model 3 reservation holders that they might not get access to the $7,500 federal tax credit if they don’t get their Model 3 delivery by the end of the year.
This essentially means that unless would-be owners placed their Model 3 order within the first few minutes of when they went on sale, they stand little chance of taking advantage of the full tax credit. That’s because their orders probably won’t be fulfilled until some time in 2018 — if not later.
The incentive gets cut by 50% for 6 months after the limiter is hit, then another 50% for the next six months before it expires completely. So all is not lost for potential buyers, although Tesla could well see a slew of order cancellations once word gets out that the refund is all but over.
Tesla Inc shares were trading at $357.13 per share on Friday afternoon, up $1.73 (+0.49%). Year-to-date, TSLA has gained 67.13%, versus a 10.32% rise in the benchmark S&P 500 index during the same period.