Bengaluru — Electric carmaker Tesla said all orders for its vehicles placed by October 15 are eligible for a full federal tax credit of $7,500 and such customers’ cars will be delivered by the end of the year. Under a major tax overhaul passed by the Republican-controlled US 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 a carmaker. The tax credit is then reduced by 50% every six months until it phases out. In July, Tesla said it delivered 200,000 electric cars to buyers in the US, 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. Buyers of electric cars get full tax credit for the quarter in which the company hits the 200,000 delivery mark and the next. The declining tax credit is seen as putting Tesla at a disadvantage over newer entrants ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00.