Elon Musk says some Tesla customers may be able to take delivery before a $7,500 tax credit is cut in half
- Some Tesla customers may still be able to take delivery before the end of the year, Tesla CEO Elon Musk suggested on Wednesday via Twitter.
- Vehicles that are delivered before the end of 2018 are eligible for a $7,500 federal tax credit that will begin to expire in 2019.
- "Reminder to US buyers that the $7500 tax credit cuts in half in 5 days! Order online at http://Tesla.com to see if there is any inventory left in your region or visit Tesla stores," Musk said.
Some Tesla customers may still be able to take delivery before the end of the year, Tesla CEO Elon Musk suggested on Wednesday via Twitter.
Vehicles that are delivered before the end of 2018 are eligible for a $7,500 federal tax credit that will begin to expire in 2019.
"Reminder to US buyers that the $7500 tax credit cuts in half in 5 days! Order online at http://Tesla.com to see if there is any inventory left in your region or visit Tesla stores," Musk said.
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The US government gives a tax credit ranging from $2,500 to $7,500 to people who buy electric vehicles, depending on the vehicle's size and battery capacity. As Tesla wrote in an annual report filed with the US Securities and Exchange Commission in February, its customers get the full $7,500.
Two calendar quarters after a company sells 200,000 electric vehicles in the US, the tax credit begins to phase out. Tesla confirmed to Business Insider in July that it had passed the 200,000-vehicle threshold. It was the first company to have its credits phased out.
Tesla customers who take delivery between January 1 and June 30, 2019, will receive a $3,750 tax credit and those who take delivery between July 1 and December 31, 2019, will receive $1,875. Customers who take delivery beginning in 2020 will not receive a federal tax credit.
Musk said on Saturday that Tesla would reimburse customers for the lost portion of the tax credit if they were told they would receive their vehicles by the end of 2018 and delivery is delayed until 2019.
"If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference," he said.
Have a Tesla news tip? Contact this reporter at mmatousek@businessinsider.com.