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Tesla delivers its 200,000th car, triggering the EV tax credit phase-out period
Tesla has delivered its 200,000th vehicle this month, triggering the phase-out period of the $7,500 federal tax credit for electric vehicles offered in the United States.
As seen on Tesla’s official Electric Vehicle Incentives page, the phase-out period for the $7,500 federal tax credit is in effect for all Model S, Model X and Model 3 vehicles delivered on or before December 31, 2018, while buyers taking delivery in 2019 will only be eligible for a subset of that original $7,500 credit. Customers taking delivery between January 1 to June 30, 2019 will be eligible for a $3,750 federal tax credit, or half of the full amount before phase-out. Those taking delivery in the second half of 2019, between July 1 to December 31, 2019 will be eligible for a $1,875 federal tax credit.
The federal credit applied to new electric vehicles, dubbed by the IRS as the Plug-In Electric Drive Vehicle Credit (IRC 30D), affects all EVs that were acquired after December 31, 2009. The credit, which took effect during the previous administration as a means to encourage drivers to adopt zero-emissions vehicles, featured a tiered credit, starting at $2,500 and going all the way up to $7,500 depending on the battery capacity of an electric car. The IRS’ official website describes how the sale of a manufacturer’s 200,000th electric car triggers the tax credit phase-out period.
“The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (‘phase-out period’).”
Tesla actually played its cards cleverly with regards to the $7,500 tax credit phase-out. Being a car company that exclusively manufactures electric cars, it was inevitable that the company would be the first automaker to hit the 200,000 mark. By reaching this milestone shortly after the second quarter, Tesla actually gave itself, as well as its customers, an additional 18 months to obtain any sort of credit. the $7,500 credit remains in effect for the whole quarter in which the 200,000th vehicle was delivered, as well as the quarter after.
After this point, the credit gets reduced by 50% to $3,750 for two quarters. In Tesla’s case, this corresponds to Q1 and Q2 2019. From Q3 and Q4 2019, Tesla’s vehicles will still be eligible for a tax credit, though it would be reduced to $1,875 by this time. Tesla’s electric cars produced from January 2020 moving forward will not be eligible for tax credits anymore.
In a way, Tesla’s timing for hitting the 200,000 mark appears to be strategic. The company, after all, just recently managed to attain its goal of producing 5,000 Model 3 per week by the end of Q2 2018. Signs from the company, such as test drives for the Model 3, massive batches of new VINs filed one after another, and a new 5-minute Sign & Drive delivery system, all seem designed to deliver as many of the electric cars to customers as fast as possible.
If there is a group of reservation holders that would feel the effect of the credit phase-out, however, it would be those holding out for the Standard Range RWD Model 3, which starts at $35,000. In a Twitter update, Elon Musk stated that Tesla would likely start the production of the base Model 3’s smaller battery pack by the end of 2018. From there, Musk noted that volume production for the vehicle would probably begin in Q1 2019.
In a meeting with investors and analysts this past Tuesday, Tesla’s Senior Director of Investor Relations Aaron Chew reportedly stated that the company is aiming to sustain its 5,000 per week pace for Q3 2018, increasing output to 7,000 cars per week for Q4 2018. By mid-2019, Tesla expects to produce 10,000 Model 3 per week, which corresponds to an output of 500,000 vehicles per year.
If Tesla manages to sustain its 5,000 Model 3 per week rate from August to September 2018, and achieve a steady rate of 7,000 vehicles per week from October 2018 to June 2019 (assuming no production ramps happen within these months), the company would be able to produce 292,000 Model 3. With a 10,000 per week rate from July to December 2019, Tesla would be able to deliver an additional 240,000 more. Thus, if Tesla plays its cards right and ramps the Model 3 in a manner that is careful and precise, it could deliver as many as 532,000 cars that are still eligible for federal credit (albeit the $3,750 and $1,875 credit). Considering that the backlog of 420,000 remaining Model 3 orders are from customers across the globe, there is a good chance that all present reservation holders in the United States would be able to get a credit for their vehicle.
Elon Musk
Tesla FSD mocks BMW human driver: Saves pedestrian from near miss
Tesla FSD anticipated a BMW driver’s lane drift before the human behind the wheel could react.
A video posted to r/TeslaFSD this week put a sharp spotlight on Tesla’s Full Self-Driving (FSD) software being able to react to pedestrian intent than an actual human driver behind the wheel. In the Reddit clip, a BMW driver can be seen rolling through a neighborhood street completely unaware of a pedestrian stepping in to cross. At the same time, a Tesla driving on FSD had already begun slowing down before the pedestrian even began their attempt to cross the street The BMW kept moving, prompting the pedestrian to hop back, while the Tesla came to a stop and provide right-of-way for the human to safely cross.
That gap between what the BMW driver saw and what FSD had already processed is the story. Tesla FSD wasn’t reacting to a person in the street, rather it was reading the signals that a person was about to enter it based on the pedestrian’s movement, trajectory, and their trajectory to telegraph intent.
Tesla’s FSD is now built on an end-to-end neural network trained on billions of real-world miles, learning to interpret subtle human behavioral cues the same way an experienced human driver does instinctively. The difference is consistency. A human driver distracted for two seconds misses what FSD does not.
Tesla sues California DMV over Autopilot and FSD advertising ruling
Reddit commenters in the thread were blunt about the BMW driver’s failure, with several pointing out that the pedestrian was visible well before the crossing. One response put it plainly that the car on FSD saw the situation developing before the human in the other car had registered there was a situation at all.
Tesla has published data showing FSD (Supervised) is 54% safer than a human driver, accumulated across billions of miles driven on the system. Elon Musk has said FSD v14 will outperform human drivers by a factor of two to three, and that v15 has “a shot” at a 10x improvement. Pedestrian safety is where the stakes are highest, and where intent prediction closes the gap fastest. At 30 mph, a car covers roughly 44 feet per second. An extra second of awareness from reading a person’s body language rather than waiting for them to step out is often the difference between a near miss and a fatality.
Video and community discussion: r/TeslaFSD on Reddit
FSD saves man from becoming a pancake. BMW driver nearly flattens him.
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Tesla Robotaxi gets a small but significant change
In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.
In the world of Tesla, where billion-dollar battery breakthroughs and autonomy milestones dominate headlines, a quiet design update can still pack a punch.
Last week in downtown Austin, sharp-eyed observers spotted a subtle but telling evolution on the Cybercab: a new “ROBOTAXI” logo graphic now graces the vehicle’s doors at Tesla’s Autonomy Popup.
What looks at first glance like a minor stylistic choice is, in fact, a deliberate rebranding move that hints at how the company envisions its robotaxi fleet fitting into everyday life.
The updated lettering is bold, graffiti-inspired, and unapologetically street-smart. Rendered in black with dripping white accents and a glowing yellow outline, the font evokes urban energy and playful irreverence.
Live From Downtown Austin:
Tesla Cybercab with new logo Graphic at their Autonomy Popup pic.twitter.com/MTTb9KDr3b
— David Moss (@DavidMoss) March 13, 2026
Gone is the sleek, minimalist typography that defined earlier Cybercab prototypes. In its place is something more human, almost rebellious.
The new logo pops against the Cybercab’s smooth, metallic body, turning the autonomous pod into a rolling piece of public art rather than just another futuristic taxi.
Designers know that fonts are silent brand ambassadors. They shape perception before a single ride is taken. Tesla’s classic sans-serif aesthetic screams precision engineering and Silicon Valley cool.
The new Robotaxi script leans into accessibility and fun, suggesting the vehicle is approachable, not intimidating. For a product meant to ferry strangers through city streets 24/7, that matters. It signals that the robotaxi isn’t reserved for tech elites; it’s for everyone.
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The timing is no accident. With regulatory approvals for unsupervised autonomy advancing and Tesla preparing to scale Cybercab production, the company is shifting from prototype showcase to fleet deployment.
A fresh logo helps differentiate the vehicles visually in dense urban environments—crucial for rider recognition and brand recall. It also aligns with Elon Musk’s long-standing ethos: make the future feel exciting, not sterile.
Small changes like this often foreshadow a larger strategy. Tesla has always obsessed over details—door handles, screen interfaces, even the curvature of a steering wheel.
Updating the Robotaxi font reflects the same meticulous care now applied to consumer-facing autonomy. It’s not just paint on metal; it’s a statement that the ride of the future should feel personal, memorable, and undeniably cool.
In an industry racing toward self-driving fleets, Tesla’s willingness to evolve even the smallest visual cues shows confidence. A font won’t launch the robotaxi network, but it might just help millions climb aboard with a smile.
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Tesla makes latest announcement on Model S and Model X
The announcement follows Tesla CEO Elon Musk’s statement on the Q4 2025 earnings call in late January. Musk described the decision as an “honorable discharge” for the two vehicles, noting that production would wind down in Q2 2026.
Tesla has officially begun winding down production of its flagship Model S and Model X in the United States, notifying owners via email that the long-running models will soon reach the end of the line.
The email, sent to U.S. customers on March 27, opens with gratitude. “Model S and Model X marked the beginning of the world’s transition to electric transportation,” it reads. “These vehicles also made it possible for Tesla to develop the technology that would move our world toward autonomy.”
It then delivers the news directly: “As we make way for this autonomous future, Model S and Model X production will be ending. If you’d like to bring home a new Model S or Model X, order yours soon from our limited inventory.”
Tesla just sent out a new email thanking Model S/X owners.
“These vehicles made it possible for Tesla to develop the technology that would move our world toward autonomy. As we make way for this autonomous future, Model S and Model X production will be ending. If you’d like to… pic.twitter.com/IeUhZ3iDnX
— Sawyer Merritt (@SawyerMerritt) March 27, 2026
The message closes with a simple thank-you: “Thank you for being part of our journey.”
The announcement follows Tesla CEO Elon Musk’s statement on the Q4 2025 earnings call in late January. Musk described the decision as an “honorable discharge” for the two vehicles, noting that production would wind down in Q2 2026.
The move frees factory floor space at Fremont, California, for next-generation manufacturing, including Optimus humanoid robots and the upcoming Robotaxi platform.
Introduced in 2012 and 2015, respectively, the Model S and Model X were Tesla’s original halo cars. They proved EVs could outperform gasoline luxury vehicles in acceleration, range, and tech features while pioneering over-the-air updates and early autonomy hardware.
Although they never matched the volume of the Model 3 and Model Y, their engineering breakthroughs laid the foundation for the company’s current lineup and full self-driving development.
Early adopters highlighted how the cars convinced them to invest in Tesla stock and the EV movement. Some U.S. owners who had not yet received the note voiced mild frustration, and international customers confirmed the outreach remains U.S.-only for now.
Tesla has not detailed an exact final production date beyond the Q2 2026 target or confirmed immediate replacements. Speculation continues about a possible Cybertruck-derived SUV, but the company’s public focus has shifted squarely to autonomy and robotics.
For buyers still interested in the S or X, the window is closing. Inventory is described as limited, and Tesla’s Korean division has already set a March 31 cutoff for new orders in that market. The email serves as both a farewell and final sales push, an elegant close to a chapter that helped define modern electric driving.
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Tesla Robotaxi gets a small but significant change
Tesla makes latest announcement on Model S and Model X
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