Tesla boss shows the true meaning of Christmas spirit.
Suppose you placed an order for a new Tesla with the expectation of receiving a significant tax credit. You're going to want both the car and the credit, right? Of course, but there's a potential problem: because of a major tax overhaul passed by the US government, tax credit incentives are only available for the first 200,000 vehicles sold by the automaker.
That tax credit is then reduced by 50 percent every six months until it's gone entirely. But Tesla CEO Elon Musk doesn't think that's fair a deal for his customers. Reuters reports that Musk has announced that Tesla will reimburse customers if their new car's delivery was delayed, causing them to miss out on the tax credits.
A few months ago, Tesla said that orders for new cars placed by October 15 would be able to receive the full $7,500 credit and, equally important, buyers would receive their new cars by the end of 2018. Starting January 1, 2019, that tax credit will be reduced to $3,750 because Tesla has achieved the 200,000-unit maximum. With less than two weeks left of the year, not all of those orders have been fulfilled, causing legitimate concern for those who placed them. But now they no longer have any reason to be upset. Musk is taking care of them.
"If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference," he replied to a user on Twitter. Would all automakers ensure customer ratification to the same degree Tesla is doing here?
In related news, Musk has also promised Tesla will deliver all orders for its immensely popular mid-range Model 3 by the end of the year. Now that Tesla has sorted out Model 3 production, Musk's latest promise likely won't lead to last-minute manufacturing mayhem.