Tesla delivers 200,000th US car; EV federal tax credit phase out begins.

[Morgen]

After refusing to confirm the timing of the federal tax credit phase-out for months, Tesla has now confirmed that it has hit the 200,000th US delivery threshold, which triggered the phase-out period.

Tesla buyers will lose the full $7,500 credit by the end of the year unless the law is changed, hitting $3750 for the first half of 2019 and $1875 in the second half of 2019.
...
The following federal income tax credits are available to anyone who purchases a new Tesla Model S, Model X or Model 3:
Federal Tax Credit For Vehicles Delivered
$7,500 On or before December 31, 2018
$3,750January 1 to June 30, 2019
$1,875July 1 to December 31, 2019

A Tesla spokesperson confirmed that they have hit the 200,000th delivery threshold this month.
Tesla confirms hitting federal tax credit threshold, $7,500 cred..

[Peachy]

Given the fact that the bonus is still far less than the negative externality caused by running a fossil fuel car for its entire lifespan, why is the credit being removed?

[Morgen]

It's always been set to end when a manufacturer delivers it's 200,000th EV, so it would require legislation to change that. I can't see that happening with the Republicans in power.

[Peachy]

Right, I just don't understand why the law was ever implemented as such in the first place.

[1/4 Life]

To give incentive toward companies creating electric cars.

[Peachy]

Please re-read the three posts in the thread.

[Morgen]

I think he means why did they limit it in the first place. Probably so they could actually get it through congress I guess, probably with the idea that if a company sold 200,000 cars in the US that they aren't going away anytime soon.

[1/4 Life]

For the same reason the government doesn't pay Ford or GM to make a car, it's there to get a company started and not for them to rely on.

[Thelurker1234]

This is likely the intent behind the law imo.

Though, you can still argue that we should up the subsidies for EVs again due to the negative externalizes of people buying gas cars. Also taxing newly-bought gas cars more would be p. good.

[Morgen]

Yeah personally I'd prefer to tax an ICE than incentiveise EVs.

[1/4 Life]

Yeah, the incentives are sort of a "we're sorry" because government regulations and testing for new cars is absurdly expensive.

Now that Tesla has left the "new car company" incentive program taxing ICE cars is probably the future.

[Morgen]

Some democrats did introduce a bill to remove the limit and change it to a rebate. I doubt it will go anywhere though.