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Tesla delivers 200,000 cars, leading to lower US tax credit

Tesla has delivered 200,000 electric cars to buyers in the US, a spokesperson said on Thursday, meaning tax credits will now begin to be lowered, while rivals such as Mercedes-Benz, BMW and Audi will bring electric models to the market with a full tax credit in place.

Under a major tax overhaul passed by the Republican-controlled Congress late last year, financial incentives in the way of tax credits that lower the cost of electric vehicles are available for the first 200,000 such vehicles sold by an automaker. The tax credit is then reduced by 50 percent every six months until it phases out.

From Jan. 1 next year, the $7,500 tax credit will drop to $3,750 around mid-year, the Tesla website said.

General Motors will also face the same problem as Tesla in the near future, as it is expected to hit the 200,000 mark with sales of its Chevrolet Bolt EV, the Chevrolet Spark all-electric subcompact car and Chevrolet Volt plug-in hybrid.

The declining tax credit is seen as putting Tesla and GM at a disadvantage over newer entrants to the market, whose first 200,000 models will qualify for a full tax credit.

GM sold an estimated 184,000 full electric or plug-in hybrid vehicles through June, according to website, which tracks electric vehicle sales.

A spokesman for GM did not immediately respond to a request for comment.

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