(Reuters) – Electric Car Manufacturer Tesla Inc ( TSLA.O ) said bit.ly/2NCbs1r all orders for their vehicles placed by October 15 are eligible for full federal tax credit of $ 7,500 and such customers will have their cars delivered by the end of the year.
PHOTO PHOTO: Rows of the new Tesla Model 3 electric vehicles are seen in Richmond, California, USA, June 22, 201
During a major tax transfer passed by the Republican controlled US Congress last year in last year, economic incentives are in the way of tax credits that reduce the cost of electric vehicles available to the first 200,000 such vehicles sold by a car manufacturer. The tax credit will then be reduced by 50 per cent every six months to the phase.
In July, Tesla said that it delivered 200,000 electric cars to US buyers, which means that tax credits will now start to fall while rivals like Mercedes-Benz, BMW AG ( BMWG.DE ) and Audi AG ( NSUG.DE ) will bring electric models to the market with full taxes in place.
Electric vehicle buyers get full tax credits for the quarter, where the company hits 200,000 delivery mark and the next.
The declining tax credits are considered to put Tesla in a disadvantage of newer players to the market whose first 200,000 models will qualify for full tax.
There are also some bad months when Tesla was exposed to delivery delays due to bottlenecks and exposed the required revenue when it continues to use heavily on Model 3 production rights as well as projects in the pipeline.
Electrek, as previously reported about the deadline for new orders, described the company's latest move as an attempt to increase sales. bit.ly/2ONOeuf
However, incentives may go if a new bill, introduced by a Republican senator to end the federal tax credit for electric cars in its entirety, has passed, Electrek reported.
Reporting of Rama Venkat in Bengaluru; Editing Gopakumar Warrier