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Tesla has a big incentive for buyers who miss out on the full $7,500 tax credit

Published Dec 24th, 2018 4:46PM EST
Tesla Tax Credit
Image: TierneyMJ/Shutterstock

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With the $7,500 federal tax credit for new Tesla purchases set to expire at the end of the month, the electric automaker is pulling out all the stops in order to boost sales and enable prospective buyers to enjoy the full credit. Earlier this month, Tesla CEO Elon Musk took to Twitter and said that buyers who opt to add themselves to a cancellation wait-list — where they can receive a car ahead of schedule should an outstanding order be cancelled — are eligible for a full refund if the car isn’t delivered before 2019.

In a similar vein, Musk over the weekend announced a new tweak to the ordering dynamic. According to Musk, some buyers who don’t get their Tesla vehicle in time to take advantage of the full tax credit will be reimbursed to the tune of $3,750. Remember, the $7,500 tax credit isn’t disappearing completely. Rather, it will drop down to $3,750 starting in January 2019 and will remain in place until the end of June.

Responding to a question about what happens if a pre-December order for a Tesla doesn’t get delivered in 2018, Musk said the following: “If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference.”

As to Tesla’s efforts to boost deliveries, the company noted a few days ago:

To help ensure vehicles are available, we’ve released all our fleet vehicles – like those used for test drives – and vehicles where the original customer can’t take delivery by the end of the year. Our mission is to accelerate the world’s transition to sustainable energy – and to do that, we need to get as many electric vehicles on the road as quickly as possible, which is why we are working around the clock to meet demand before the end of the year.

Beginning in July of 2019, the federal tax credit for new Tesla purchases will drop down to $1,875. The credit will ultimately expire for good beginning in January of 2020.

Yoni Heisler Contributing Writer

Yoni Heisler has been writing about Apple and the tech industry at large with over 15 years of experience. A life long expert Mac user and Apple expert, his writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and TUAW.

When not analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions.