Those shopping for electric vehicles should take careful note of the upcoming change to the federal tax deduction on electric vehicles for some important models. Tesla’s vehicles now make up the bulk of the electric vehicle market. Sadly, many EVs are not working out.
Affordable EVs are failing in the marketplace and sales have dropped to below 2,000 units per month for even the “top-selling” affordable EV models. As the federal tax deductions phase out for some models, this downward sales trend for EVs trend will likely only worsen.
Tesla Tax Deduction Change Deadline and Timeline
Every Tesla vehicle becomes more expensive on Monday, July 1st, 2019. That is exactly one week away. Tesla’s website has the exact information you need, but the upshot of the change is that the federal tax deduction available drops from $3,750 to $1,875. That change means that those who wait until shortly after the deadline next Monday will effectively be paying $1,875 more for the same car.