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Tesla announces deadline for customers to receive full tax credit

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Tesla announces deadline for customers to receive full tax credit

Tesla Inc. customers have until Oct. 15 to purchase one of its electric vehicles and still receive the full federal tax credit.

The California-based automaker posted on its website that all orders placed by Oct. 15 will be delivered by the end of the year and are eligible for the $7,500 EV tax credit that starts phasing out once a manufacturer sells 200,000 electric vehicles.

The tax credit phases out "over the one-year period beginning with the second calendar quarter after the calendar quarter" where the automaker hit the 200,000 cap, according to the Internal Revenue Service.

EV drivers are eligible for 50% of the credit if the vehicle was purchased in the first two quarters of the phaseout period, according to the IRS. They are eligible for 25% of the credit if the vehicle was purchased in the third or fourth quarter of the phaseout period.

Tesla hit the 200,000 cap in July, which means vehicles purchased after Dec. 31 will be eligible for lower tax credits. Vehicles delivered between Jan. 1 and June 30, 2019, will be eligible for up $3,750, and those delivered between July 1, 2019, and Dec. 31, 2019, will be eligible for up to $1,875, according to Tesla.

The automaker has struggled with meeting a self-imposed goal of consistently producing 5,000 Model 3 cars per week.

Tesla announced Oct. 2 that its third-quarter vehicle production rose 50% from the second quarter.

However, that still amounts to fewer than 5,000 Model 3s produced per week.