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BUSINESS: Tesla reports record output infographic
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Tesla reports record output

Graphic News

January 3, 2019 -- Tesla’s electric car deliveries hit 244,920 in 2018, up 138 per cent from 2017, driven by a surge in Model 3 sales. The success has triggered a phase-out of a $7,500 federal tax credit for buying a new plug-in car.

The tax credit is halved to $3,750 once manufacturers reach a 200,000 delivery threshold, a point that Tesla reached in July 2018. Tesla’s chief executive Elon Musk announced a $2,000 price cut to all its vehicles in the U.S. amid concerns that sales of its $35,000 Model 3 would suffer. Analysts estimate that the Model 3 costs as much as $42,000 to build.

Alongside Tesla, General Motors is also facing the loss of the valuable tax credit as the carmaker battles political fallout triggered by its plans to close five North American factories and shed 15% of its workers -- a move that provoked President Donald Trump to declare that he was “looking at cutting all GM subsidies, including for electric cars.”

Preserving the incentive for buyers is crucial for GM as it helps make plug-ins such as the $36,000 Chevy Bolt more affordable.

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