Published: Sat, July 14, 2018
Electronics | By Shannon Stone

Tesla Model 3 Performance: Musk announces more specs of future M3 rival

Tesla Model 3 Performance: Musk announces more specs of future M3 rival

A Tesla spokesman confirmed that the company delivered its 200,000th vehicle in the USA this month, so the full $7,500 tax credit will remain in place until December 31.

The announcement was first discovered by Jalopnik.

Two quarters after a company reaches 200,000 sales in the USA, the incentive is cut in half to $3,750.

Tesla has also started changing its strategy for the Model 3. 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 vehicle. The tax credits then start to phase out-halved to $3,750 between January 1 and June 30, 2019, and then again halved to $1,875 from July 1 to December 31, 2019, until they stop.

That means we now know how much the Model 3 costs with all the options-and "affordable" is kind of a stretch.

Last week, GM said demand for the Bolt in the United States, Canada and South Korea had "outstripped production" and that it would increase output in the fourth quarter by 20 percent.

For the first time since it started taking reservations for its new "affordable" Model 3, Tesla has opened up the car's configurator to the public. 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. 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.

It finally happened. After bringing up Model 3 production to Elon Musk's self-imposed quota, Tesla has hit the point where its vehicle sales are high enough to begin the EV tax credit phase-out.

Musk said the Model 3 sedan was the third product on which Tesla gambled its existence, after its first vehicle, the Roadster sports auto, and the Model S sedan, which represented a sizable increase in annual production. The Model 3, after all, would likely determine whether Tesla could achieve its target of becoming profitable this third or fourth quarter.

Like this: