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Want a Tesla? Time is running out on $7,500 federal tax credit

Source: - Jul 3, 2019

The federal tax credit for Tesla buyers falls by 50% on Monday and will be eliminated altogether at the start of 2020.

The reduction of the tax credit makes buying a Tesla more expensive, because the credit reduces the federal tax bill for buyers. So Tesla could suffer a drop in sales or feel pressure to cut prices, either of which would be bad news for a company struggling to return to profitability.

“When Tesla loses any part of that credit, it undeniably loses a segment of its customer base,” said Karl Brauer, executive publisher of Kelley Blue Book. “It’s never going to help them sell more cars, it’s only going to hurt.”

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Category: General Business