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

(Reuters) – Electric car maker Tesla Inc. said car orders placed before Oct. 15 would qualify for a total federal tax credit of $ 7,500. These customers will receive their car by the end of the year.

As part of a major tax reform passed by the US Congress, controlled by Republicans, late last year, incentives in the form of tax credits reducing the cost of electric vehicles are available for the 200,000 first 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 start to be reduced, while competitors such as Mercedes-Benz, BMW AG and Audi AG will market their cars. electric models with a full fee. credit in place.

Buyers of electric cars receive a full tax credit for the quarter in which the company reaches the threshold of 200,000 deliveries and the next, according to Internal Revenue Service regulations, bit.ly/2NxwsXn.

This means that Tesla will have until the end of the year to grant full tax credits, which could lead to a new wave of orders and affect the production and delivery chain, already in great demand.

Tesla has strived to deliver the Model 3 – a mass-market saloon that it hopes will be the key to success – and many customers have been waiting since early 2016.

The vehicles have piled up in lots in California while waiting for transport. Musk said last month that Tesla had gone from "the hell of production to the hell of logistics deliveries".

Friday's news confirms that many customers may still have to wait three months or more. Musk said earlier this month that an increase in production in the third quarter had pushed it to the limit of its profitability.

The reduction in tax credit may put Tesla at a disadvantage, with competitors such as Mercedes-Benz, BMW AG and Audi AG marketing electric models offering a full tax credit.

It also adds to what was a bad month for Tesla, who has seen more and more calls for closer monitoring of Musk, whose recent erratic behavior by the public has raised concerns about his ability to lead the company losing money during a difficult growth phase.

The company recently filed a lawsuit with the US Securities and Exchange Commission that threatened to coerce it out.

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.