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Tesla hits key deliveries threshold and that means federal tax credit will be phased out

Tesla Inc. has hit a key threshold for deliveries that mean the $7,500 federal electric vehicle tax credit for new owners is about to start being phased out.

As first reported by news website Jalopnik, Tesla’s TSLA, -1.45% website now includes on its vehicles incentives support page the information that a customer who takes delivery of a vehicle on or before Dec. 31 is eligible for a $7,500 tax credit. From Jan. 1 to June 30, 2019, that credit is halved to $3,750, and halved again for the period from July 1 to Dec. 31, 2019.

The phase-out was slated to start as soon as an electric vehicle maker reaches 200,000 deliveries.

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