Published: Sat, July 14, 2018
Tech | By

Tesla customers could lose thousands in tax credits next year

Tesla customers could lose thousands in tax credits next year

With more than 400,000 customers holding deposits on the Tesla Model 3, many of those customers will likely not receive any federal tax credit.

Tesla has reportedly finally reached its production goal with the Model 3 building more than 5,000 of the sedans in the last week of the second quarter. The milestone has been viewed as integral to CEO Elon Musk's Silicon Valley auto concern as it fights against new competition and makes a major stride into the mass market with its new sedan.

Tesla has struggled to ramp up production for the Model 3, which it launched in July of a year ago.


Workers at Tesla's Fremont Factory were reportedly given free Red Bull to stay awake and instructed to walk through a raw sewage spill so that Model 3 production could continue, according to Bloomberg Businessweek.

Since then, however, signs have emerged pointing to the idea that Tesla would be able to sustain its 5,000/week production rate for the Model 3 this third quarter.

"I feel like I have a great debt to the people of Tesla", Musk told Bloomberg. When the base Model 3 becomes available, many may sell for about that price with Autopilot, all-wheel drive, or the premium package, plus an optional paint color or wheel choice. With this in mind, there is a pretty fair chance of the tracker's favorable forecast for Model 3 production would prove to be accurate. The Model 3 was created to be Tesla's first mass-market vehicle, meant to broaden the company's customer base beyond the luxury segment and increase the rate of electric-vehicle adoption. CEO Elon Musk, for one, noted on Twitter that the Model 3, while newer than the Model S, is not a superior vehicle. There are still state-level incentives available, however, which Tesla has also laid out on its site. 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 rear-wheel-drive Long Range model starts at $52,500, while the all-wheel-drive Dual Motor drivetrain adds $4000 to that.

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