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Tesla delivers its 200,000th car, triggering the EV tax credit phase-out period

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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.

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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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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk says he’s open to powering Apple’s Siri with xAI’s Grok

Siri, one of the first intelligent AI assistants in the market, has become widely outdated and outperformed by rivals over the years.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk says he’s willing to help Apple overhaul Siri by integrating xAI’s Grok 4.1, igniting widespread excitement and speculations about a potential collaboration between the two tech giants. 

Siri, one of the first intelligent AI assistants in the market, has become widely outdated and outperformed by rivals over the years.

Musk open to an Apple collaboration

Musk’s willingness to team up with Apple surfaced after an X user suggested replacing Siri with Grok 4.1 to modernize the AI assistant. The original post criticized Siri’s limitations and urged Apple to adopt a more advanced AI system. “It’s time for Apple to team up with xAI and actually fix Siri. Replace that outdated, painfully dumb assistant with Grok 4.1. Siri deserves to be Superintelligent,” the X user wrote.

Musk quoted the post, responding with, “I’m down.” Musk’s comment quickly attracted a lot of attention among X’s users, many of whom noted that a Grok update to Siri would be appreciated because Apple’s AI assistant has legitimately become terrible in recent years. Others also noted that Grok, together with Apple’s potential integration of Starlink connectivity, would make iPhones even more compelling. 

Grok promises major Siri upgrades

The enthusiasm stems largely from Grok 4.1’s technical strengths, which include stronger reasoning and improved creative output. xAI also designed the model to reduce hallucinations, as noted in a Reality Tea report. Supporters believe these improvements could address Apple’s reported challenges developing its own advanced AI systems, giving Siri the upgrade many users have waited years for.

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Reactions ranged from humorous to hopeful, with some users joking that Siri would finally “wake up with a personality” if paired with Grok. Siri, after all, was a trailblazer in voice assistants, but it is currently dominated by rivals in terms of features and capabilities. Grok could change that, provided that Apple is willing to collaborate with Elon Musk’s xAI.

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Tesla’s top-rated Supercharger Network becomes Stellantis’ new key EV asset

The rollout begins in North America early next year before expanding to Japan and South Korea in 2027.

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Credit: Tesla

Stellantis will adopt Tesla’s North American Charging System (NACS) across select battery-electric vehicles starting in 2026, giving customers access to more than 28,000 Tesla Superchargers across five countries. 

The rollout begins in North America early next year before expanding to Japan and South Korea in 2027, significantly boosting public fast-charging access for Jeep, Dodge, and other Stellantis brands. The move marks one of Stellantis’ largest infrastructure expansions to date.

Stellantis unlocks NACS access

Beginning in early 2026, Stellantis BEVs, including models like the Jeep Wagoneer S and Dodge Charger Daytona, will gain access to Tesla’s Supercharger network across North America. The integration will extend to Japan and South Korea in 2027, with the 2026 Jeep Recon and additional next-generation BEVs joining the list as compatibility expands. Stellantis stated that details on adapters and network onboarding for current models will be released closer to launch, as noted in a press release.

The company emphasizes that adopting NACS aligns with a broader strategy to give customers greater freedom of choice when charging, especially as infrastructure availability becomes a deciding factor for EV buyers. With access to thousands of high-speed stations, Stellantis aims to reduce range anxiety and improve long-distance travel convenience across its global portfolio.

Tesla Supercharger network proves its value

Stellantis’ move also comes as Tesla’s Supercharger system continues to earn top rankings for reliability and user experience. In the 2025 Zapmap survey, drawn from nearly 4,000 BEV drivers across the UK, Tesla Superchargers were named the Best Large EV Charging Network for the second year in a row. The study measured reliability, ease of use, and payment experience across the country’s public charging landscape.

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Tesla’s UK network now includes 1,115 open Supercharger devices at 97 public locations, representing roughly 54% of its total footprint and marking a 40% increase in public availability since late 2024. Zapmap highlighted the Supercharger network’s consistently lower pricing compared to other rapid and ultra-rapid providers, alongside its strong uptime and streamlined user experience. These performance metrics further reinforce the value of Stellantis’ decision to integrate NACS across major markets.

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Tesla FSD and Robotaxis are making people aware how bad human drivers are

These observations really show that Tesla’s focus on autonomy would result in safer roads for everyone.

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Credit: Tesla

Tesla FSD and the Robotaxi network are becoming so good in their self-driving performance, they are starting to highlight just how bad humans really are at driving. 

This could be seen in several observations from the electric vehicle community.

Robotaxis are better than Uber, actually

Tesla’s Robotaxi service is only available in Austin and the Bay Area for now, but those who have used the service have generally been appreciative of its capabilities and performance. Some Robotaxi customers have observed that the service is simply so much more affordable than Uber, and its driving is actually really good.

One veteran Tesla owner, @BLKMDL3, recently noted that the Robotaxi service has become better than Uber simply because FSD now drives better than some human drivers.  Apart from the fact that Robotaxis allow riders to easily sync their phones to the rear display, the vehicles generally provide a significantly more comfortable ride than their manually-driven counterparts from Uber.

FSD is changing the narrative, one ride at a time

It appears that FSD V14 really is something special. The update has received wide acclaim from users since it was released, and the positive reactions are still coming. This was highlighted in a recent post from Tesla owner Travis Nicolette, who shared a recent experience with FSD. As per the Tesla owner, he was quite surprised as his car was able to accomplish a U-turn in a way that exceeded human drivers.

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Yet another example of FSD’s smooth and safe driving was showcased in a recent video, which showed a safety monitor of a Bay Area Robotaxi falling asleep in the driver’s seat. In any other car, a driver falling asleep at the wheel could easily result in a grave accident, but thanks to FSD, both the safety monitor and the passengers remained safe.

These observations, if any, really show that Tesla’s focus on autonomy would result in safer roads for everyone. As per the IIHS, there were 40,901 deaths from motor vehicle crashes in the United States in 2023. The NHTSA also estimated that in 2017, 91,000 police-reported crashes involved drowsy drivers. These crashes led to an estimated 50,000 people injured and 800 deaths. FSD could lower all these tragic statistics by a notable margin.

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