Despite the auto maker's best efforts to push customers to buy out its inventory, Tesla enters the new year with several thousand vehicles still on hand, and the changing tax environment is not going to help.
It's a bad thing for folks who want to buy a Tesla in the future. It is getting ready to offer a $35,000 version of the Model 3 in 2019, its lowest-cost model targeting budget-conscious buyers.
Tesla is trying to "liquidate every car" in the United States and has made every effort to deliver a record number of vehicles over the past few months, while urging potential buyers to make good use of the federal tax credit on the auto before it phases out in 2019, the report said. However, it's not just Tesla devotees that he's been pitching on the purchase of a new vehicle. But in that case, Tesla gets the tax credit and will lower the lease price by the same amount.
"Tesla intends to certify to the Commission that it and Elon have timely completed each of their respective actions required pursuant to the Settlement", the company said in a securities filing. California remains the biggest market for electric vehicles in the U.S.
And Musk said in a tweet earlier this month that if Tesla committed to December delivery and the customer made a "good faith effort" to receive it before year end, Tesla will cover the tax credit difference if the auto doesn't get there until next year.
Despite the company's frenetic attempts to sell every vehicle it produced, a 2019 tax credit cut will make things much more complicated.
Most of these new electric models from Tesla rivals will be eligible for the full $7,500 federal tax credit.
General Motors (GM) is next up for the phase-out of the tax credit. Tesla reached that mark in July - the first automaker to do so.
Tesla argued that it is now at a disadvantage going forward.
It's possible that buyers will actually take delivery of their new purchases tonight, it seems unlikely that Tesla will blow through the entire inventory of 3,000 vehicles, the website noted.