Two more quarters of $1,875 left, after which there will be no federal tax credit on Tesla cars

Today (July 1, 2019), the available amount of federal tax credit for all new Tesla cars sold in the U.S. decreased from $3,750 to $1,875.

Tesla is the first manufacturer that is gradually losing the federal tax credit, because it was the first to cross the target of 200,000 plug-in car sales (in early Q3 2018). The second manufacturer is GM, which is one quarter behind Tesla.

The new amount (25% of the full $7,500) will stay available through the end of this year.


At this point, it's not clear how Tesla will deal with effectively a $1,875 higher cost for consumers. Previously, Tesla decreased prices when the credit moved from $7,500 to $3,500.

A lot will depend on the demand in Q3 after surging in late Q2.

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