Bullish on Tesla's future in China, Elon Musk ends 3-day visit

Andrew Cummings
July 15, 2018

The success of the tax credit as a policy decision will hinge on whether Tesla and its peers get there eventually. The tax credits then start to phase out-halved to $3,750 between January 1 and June 30, 2019, and then again halved to $1,875 from July 1 to December 31, 2019, until they stop.

The SEC declined a request for comment. However, Tesla simply could not produce Model 3s at an acceptable rate.

All of which is very nice, but we know what you're thinking: "show us the jianbing photo".

Tesla buyers have benefitted from a $7,500 federal tax credit, but that's going away.

Each manufacturer is allotted 200,000 credits before the phaseout begins.

The Norwegian Consumer Council stated on July 4 Tesla had climbed to fourth place in the first six months of this year in the list of companies Norwegians complain about the most, up from 24th in 2017.

However, analysts are saying that it is not only Tesla who stands to benefit from the construction of the gigafactory and the eventual building of cars there.

The incentive program was established to help jump-start the electric auto industry by subsidizing the costs of developing new technologies in its early years.

Along with the new Model 3 orders placed from here on out, Tesla has a backlog of about 400,000 reservation holders as it continues to ramp up production. These doubts, together with lower than expected Model 3 deliveries revealed in Tesla's Q2 2018 delivery and production report, ultimately caused the company's stocks to tumble last week.

For example, a buyer today who purchases a Model 3 for $50,000 (representing a long-range battery, rear-wheel drive vehicle with the required Premium Package), would get a tax credit that will bring the effective price down to $42,500. Despite this anti-selling, however, Model 3 reservations remained high, with Tesla most recently confirming that it still has a backlog of 420,000 orders for the electric auto.

The former Tesla employee who was sacked and then sued by the electric vehicle automaker has filed a formal whistleblower tip to the U.S. Securities and Exchange Commission alleging the company has misled investors and put its customers at risk.

However, under changes to subsidies for electric cars introduced previous year, the support is gradually phased out after a company has sold 200,000 vehicles.

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