Tesla declares that orders placed before October 15 are eligible for a full tax credit

(Reuters) – Electrical Manufacturer Tesla Inc (TSLA.O) said bit.ly/2NCbs1r that all orders for his vehicles placed before October 15 are eligible for a total federal tax credit of $ 7,500. These customers will receive their car by the end of the year.

During a major tax reform adopted by the Republican-controlled US Congress late last year, financial incentives in the form of tax credits that reduce the cost of electric vehicles are available for the first 200,000 vehicles sold by a car manufacturer. The tax credit is then reduced by 50% every six months until it disappears.

In July, Tesla announced that it has delivered 200,000 electric cars to US buyers, which means that tax credits will begin to be reduced while competitors such as Mercedes-Benz, BMW AG (BMWG.DE) and Audi AG (NSUG.DE) will bring electric models to the market with a full tax credit in place.

Buyers of electric cars receive a full tax credit for the quarter in which the company breaks the 200,000 and the next 200,000 deliveries.

The declining tax credit is considered to be a disadvantage for Tesla compared to newcomers to the market, whose first 200,000 models will receive a full tax credit.

It also adds up to those few bad months, as Tesla has had to deal with delivery delays due to manufacturing bottlenecks and a much needed revenue carryover as it continues to spend considerable amounts of money on the repair of model 3 as well as for ongoing projects.

Electrek, who previously reported the deadline for new orders, described the company's latest move as an attempt to boost sales. bit.ly/2ONOeuf

However, the incentives could go if a new bill, introduced by a Republican senator to end the federal tax credit for electric cars, was passed, reported Electrek.