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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.
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Tesla loses Director who designed one of the company’s best features
Thomas Dmytryk, who has spent over 11 years with Tesla and helped to develop Over-the-Air updates and the company’s vehicles’ ability to utilize them to improve, has decided to leave.
Tesla has lost the director who designed one of the company’s best features: Over-the-Air updates.
Thomas Dmytryk, who has spent over 11 years with Tesla and helped to develop Over-the-Air updates and the company’s vehicles’ ability to utilize them to improve, has decided to leave. In a lengthy statement on LinkedIn, Dmytryk said that he’s “closing the book.” He had nothing but good things to say:
“After 11 incredible years at Tesla, I’m closing the book. It’s been the ride of a lifetime: always on the news, innovating relentlessly, constantly pushing the limits. Tesla is THE place for talented, passionate people. I feel insanely lucky to have been part in that culture for so long.”
It appears the intense lifestyle of developing and creating intensively for so long might have caught up to Dmytryk, who did not give his definitive plans for the future, and it appears he may be taking some time off before jumping into a new venture:
“The future? Extremely bright. Ambitions intact, just getting started as a transformative company that could elevate billions of lives. So why leave now?! Human life’s always been my North Star, right now I need to be with mines. I’ve always admired Tesla’s top leadership and vision. But what I’ve always found incredible is the tenacity, brilliance and devotion of people on the front line. YOU make Tesla unstoppable. I wish you all the best and of course EPIC wins.”
The move was first reported by NotaTeslaApp.
Over-the-Air updates are among Tesla’s best features. They are used to improve the Full Self-Driving suite, add features, remedy recalls, and more. Many vehicles have the ability to receive OTA updates, as I did in a Ford Bronco previous to my Model Y. However, Tesla does them better than anyone else: they’re seamless, effective, and frequent. Your car always improves.
The move is a blow to Tesla, of course, considering Dmytryk’s massive contribution to the company and extremely long tenure spent, but not something that is overwhelmingly detrimental. Tesla deals with a lot of extremely intelligent people, some of whom are the best in their field, so they are sure to find a suitable replacement.
However, it’s no secret that the company has been losing some of its top talent, some of whom were in executive roles. Some have left to take on new projects, and others have not revealed their career plans.
It seems at least some of those employees are simply deciding to walk away and try new things after working so hard for so long. According to Dmytryk’s LinkedIn, he also played a large part in Musk’s acquisition of X, as he stated he “worked at Twitter/X ~45/week while working at the same pace for Tesla.”
That averages a 13-hour day, seven days a week, or 18 hours for the normal five-day work week.
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Tesla’s most wanted Model Y heads to new region with no sign of U.S. entry
Unlike the standard Model Y, the “L” stretches the wheelbase by roughly 150 mm and the overall length by about 177 mm to 4,976 mm. The result is a genuine 2-2-2 seating layout that gives six adults proper legroom and cargo space — a true family hauler without the cramped third-row compromises of many three-row SUVs.
Tesla’s most wanted Model Y configuration is heading to a new region, and although U.S. fans and owners have requested the vehicle since its release last year, it appears the company has no plans to bring it to the market.
According to fresh regulatory filings, the six-seat Model Y L is coming to South Korea with signs indicating an imminent launch. The extended-wheelbase configuration, already a hit in China, just cleared energy-efficiency certification from the Korea Energy Agency, paving the way for deliveries as early as the first half of 2026.
The vehicle is already built at Tesla’s Giga Shanghai facility in China, making it an ideal candidate for the Asian market, as well as the European one, as the factory has been known as a bit of an export hub in the past.
$TSLA
BREAKING: The official launch of Tesla Model Y L in S.Korea seems to be quite imminent.Additional credentials related to Model YL were released today.
✅ Battery Manufacturer: LG Energy Solutions
✅ Number of passengers: 6 people
✅ Total battery capacity: 97.25 kWh… pic.twitter.com/hmy64XYi80— Tsla Chan (@Tslachan) March 6, 2026
It seems like Tesla was prepping for this release anyway, as the timing was no accident. A camouflaged Model Y L prototype was spotted testing on Korean highways the same day the certification dropped. Tesla has already secured similar approvals for Australia and New Zealand, with both markets expecting the larger Model Y in 2026.
Unlike the standard Model Y, the “L” stretches the wheelbase by roughly 150 mm and the overall length by about 177 mm to 4,976 mm. The result is a genuine 2-2-2 seating layout that gives six adults proper legroom and cargo space — a true family hauler without the cramped third-row compromises of many three-row SUVs.
South Korean filings list it as an all-wheel-drive imported electric passenger vehicle with a 97.25 kWh total battery capacity supplied by LG Energy Solution. Local tests show an impressive 543 km (337 miles) combined range at room temperature and 454 km (282 miles) in colder conditions, easing one of the biggest concerns for Korean EV buyers.
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
But for U.S. fans, things are not looking good for a launch in the market.
CEO Elon Musk has been blunt. The six-seater “wouldn’t arrive in the U.S. until late 2026, if ever,” he said, pointing to the company’s heavy bet on unsupervised Full Self-Driving and robotaxi platforms like the Cybercab. With the Model X slated for discontinuation, many families hoped the stretched Model Y would slide into the lineup as an affordable three-row bridge. So far, that hope remains unfulfilled.
For now, South Korean drivers will be among the first buyers outside China to enjoy the spacious, efficient Model Y L. Tesla continues its global rollout strategy, tailoring vehicles to regional tastes while North American customers keep refreshing their apps and crossing their fingers.
The Model Y L proves the appetite for practical, family-sized electric SUVs is stronger than ever. Hopefully, Tesla will listen to its fans and bring the vehicle to the U.S. where it would likely sell well.
Elon Musk
Tesla is ramping up its advertising strategy on social media
Tesla has long stood out in the automotive world for its unconventional approach to advertising—or, more accurately, its near-total avoidance of it. For over a decade, the company spent virtually nothing on traditional marketing.
Tesla seems to be ramping up its advertising strategy on social media once again. Marketing and advertising have not been a major focus of Tesla’s, something that has brought some criticism to the company from its fans.
However, the company looks to be making adjustments to that narrative, as it has at times in the past, as ads were spotted on several different platforms over the past few days.
On Facebook and YouTube, ads were spotted that were evidently placed by Tesla. On Facebook, Tesla was advertising Full Self-Driving, and on YouTube, an ad for its Energy Division was spotted:
Tesla also threw up some ads on YouTube for Energy https://t.co/19DGQMjBsA pic.twitter.com/XQRfgaDKxY
— TESLARATI (@Teslarati) March 9, 2026
Tesla has long stood out in the automotive world for its unconventional approach to advertising—or, more accurately, its near-total avoidance of it. For over a decade, the company spent virtually nothing on traditional marketing.
In 2022, Tesla’s U.S. ad spend was roughly $152,000, a rounding error compared to General Motors’ $3.6 billion the following year.
Traditional automakers averaged about $495 per vehicle on ads; Tesla spent $0. CEOElon Musk’s stance was explicit: “Tesla does not advertise or pay for endorsements,” he posted on X in 2019. “Instead, we use that money to make the product great.”
The strategy relied on word-of-mouth from delighted owners, Elon’s massive X following, viral product launches, media frenzy, and customer referrals. A great product, Musk argued, sells itself. It does not need Super Bowl spots or billboards. Resources poured into R&D instead, with Tesla investing nearly $3,000 per car, far more than rivals.
Tesla counters jab at lack of advertising with perfect response
This reluctance wasn’t arrogance; it was philosophy, and Musk made it clear that the money was better spent on the product. Heavy spending on ads was seen as wasteful when innovation and authenticity drove organic demand. Shareholder calls for marketing budgets were ignored.
The current shift, paid Facebook ads promoting Full Self-Driving (Supervised) and YouTube Shorts offering up to $1,000 back on Powerwall batteries, marks a pragmatic evolution.
These targeted campaigns coincide with the end of one-time FSD purchases and a March 31 deadline for FSD transfer eligibility on new vehicles.
This move likely signals Tesla adapting to scale, as well as a more concerted effort to stop misinformation regarding its platform. As EV competition intensifies and the company bets big on robotaxis and energy storage, pure organic buzz may not suffice to hit adoption targets. Selective digital ads allow precise, cost-effective reach without abandoning core principles.
If successful, it could foreshadow measured expansion into marketing, boosting high-margin software and home energy revenue while preserving Tesla’s innovative edge. But, it’s nice to see the strategy return, especially as Tesla has been reluctant to change its mind in the past.
Tesla loses Director who designed one of the company’s best features
Tesla’s most wanted Model Y heads to new region with no sign of U.S. entry
