Tesla's cars continue to sell like pancakes, and customer reservations have since packed in for the Model 3. The news may rake in a huge profit margin for the company, however, some customers may end up worrying over an impending loss of up to $7500 in fed tax credits.
As Tesla approaches the 200,000th order for the Model 3, up to $7500 in tax incentives could be removed for electric vehicles based on a Federal initiative, according to GreenCar Reports. For customers who are already on the list waiting on the Model 3, the car's early delivery could mean an incentive or a loss for them.
The company is reported to be reviewing the specifics and figuring more work around regarding the phasing-out of the huge incentive, as well as working on a way for customers to still be able to keep it. Varied news sources have speculated on the company doing something about it by manipulating the units' deliveries, allowing customers to still get the $7500 incentive, according to the publication.
Another theory could be to shift deliveries to some other markets, putting the delivery on a slow pace to let more customers stay eligible for the tax credit in full, Yahoo News reported. Yet, Tesla CEO Elon Musk posted on Twitter that customer happiness comes first even in the company's expense.
The Federal tax credit initiative says that when a car maker reaches its 200K unit limit for a specific model, the credit would get cut down to half ($3750) for two-quarters once it goes over the set limit. To make things worse, the credit gets cuts again to another half or down to $1875 for the succeeding two-quarters prior to its termination.
The company had already delivered 50 to 60,000 units by 2015, and is planning to hasten deliveries this 2016, as per the news agency.
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