News
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.
Cybertruck
Tesla Cybertruck’s newest trim will undergo massive change in ten days, Musk says
It appears as if the new All-Wheel-Drive trim of Cybertruck won’t be around for too long, however. Elon Musk revealed this morning that it will be around “only for the next 10 days.”
Tesla’s new Cybertruck trim has already gotten the axe from CEO Elon Musk, who said the All-Wheel-Drive configuration of the all-electric pickup will only be available “for the next ten days.”
Musk could mean the price, which is $59,990, or the availability of the trim altogether.
Last night, Tesla launched the All-Wheel-Drive configuration of the Cybertruck, a pickup that comes in at less than $60,000 and features a competitive range and features that are not far off from the offerings of the premium trim.
Tesla launches new Cybertruck trim with more features than ever for a low price
It was a nice surprise from Tesla, considering that last year, it offered a Rear-Wheel-Drive trim of the Cybertruck that only lasted a few months. It had extremely underwhelming demand because it was only $10,000 cheaper than the next trim level up, and it was missing a significant number of premium features.
Simply put, it was not worth the money. Tesla killed the RWD Cybertruck just a few months after offering it.
With the news that Tesla was offering this All-Wheel-Drive configuration of the Cybertruck, many fans and consumers were encouraged. The Cybertruck has been an underwhelming seller, and this seemed to be a lot of truck for the price when looking at its features:
- Dual Motor AWD w/ est. 325 mi of range
- Powered tonneau cover
- Bed outlets (2x 120V + 1x 240V) & Powershare capability
- Coil springs w/ adaptive damping
- Heated first-row seats w/ textile material that is easy to clean
- Steer-by-wire & Four Wheel Steering
- 6’ x 4’ composite bed
- Towing capacity of up to 7,500 lbs
- Powered frunk
It appears as if this trim of Cybertruck won’t be around for too long, however. Musk revealed this morning that it will be around “only for the next 10 days.”
Only for the next 10 days https://t.co/82JnvZQGh2
— Elon Musk (@elonmusk) February 20, 2026
Musk could mean the price of the truck and not necessarily the ability to order it. However, most are taking it as a cancellation.
If it is, in fact, a short-term availability decision, it is baffling, especially as Tesla fans and analysts claim that metrics like quarterly deliveries are no longer important. This seems like a way to boost sales short-term, and if so many people are encouraged about this offering, why would it be kept around for such a short period of time?
Some are even considering the potential that Tesla axes the Cybertruck program as a whole. Although Musk said during the recent Q4 Earnings Call that Cybertruck would still be produced, the end of the Model S and Model X programs indicates Tesla might be prepared to do away with any low-volume vehicles that do not contribute to the company’s future visions of autonomy.
The decision to axe the car just ten days after making it available seems like a true head-scratcher.
Elon Musk
Elon Musk’s Neuralink sparks BCI race in China
One of the most prominent is NeuroXess, which launched in 2021 and is already testing implants in patients.
Neuralink, founded by Elon Musk, is helping spark a surge of brain-computer interface (BCI) development in China, where startups are moving quickly into human trials with strong state backing.
One of the most prominent is NeuroXess, which launched in 2021 and is already testing implants in patients.
Neuralink’s clinical work and public demonstrations have drawn worldwide attention to invasive brain implants that allow patients to control digital devices using their minds. The company is currently running a global clinical trial and is also busy preparing for its next product, Blindsight, which would restore vision to people with visual impairments.
Neuralink’s visibility has helped accelerate similar efforts in China. Beijing last year classified brain-computer interfaces as a strategic sector and issued a roadmap calling for two or three globally competitive companies by 2030, as per the Financial Times. Since February last year, at least 10 clinical trials for invasive brain chips have launched in the country.
NeuroXess recently reported that a paralyzed patient was able to control a computer cursor within five days of implantation. Founder Tiger Tao credited government support for helping shorten the path from research to trials.
Investment activity has followed the policy push. Industry data show dozens of financing rounds for Chinese BCI startups over the past year, reflecting rising capital interest in the field. Ultimately, while Neuralink remains one of the most closely watched players globally, its momentum has clearly energized competitors abroad.
News
Tesla Supercharger vandalized with frozen cables and anti-Musk imagery amid Sweden union dispute
The incident comes amid Tesla’s ongoing labor dispute with IF Metall.
Tesla’s Supercharger site in Vansbro, Sweden, was vandalized during peak winter travel weeks. Images shared to local media showed frozen charging cables and a banner reading “Go home Elon,” which was complete with a graphic of Musk’s controversial gesture.
The incident comes amid Tesla’s ongoing labor dispute with IF Metall, which has been striking against the company for more than two years over collective bargaining agreements, as noted in a report from Expressen.
Local resident Stefan Jakobsson said he arrived at the Vansbro charging station to find a board criticizing Elon Musk and accusing Tesla of strikebreaking. He also found the charging cables frozen after someone seemingly poured water over them.
“I laughed a little and it was pretty nicely drawn. But it was a bit unnecessary,” Jakobsson said. “They don’t have to do vandalism because they’re angry at Elon Musk.”
The site has seen heavy traffic during Sweden’s winter sports holidays, with travelers heading toward Sälen and other mountain destinations. Jakobsson said long lines formed last weekend, with roughly 50 Teslas and other EVs waiting to charge.
Tesla Superchargers in Sweden are typically open to other electric vehicle brands, making them a reliable option for all EV owners.
Tesla installed a generator at the location after sympathy strikes from other unions disrupted power supply to some stations. The generator itself was reportedly not working on the morning of the incident, though it is unclear whether that was connected to the protest.
The dispute between Tesla and IF Metall centers on the company’s refusal to sign a collective agreement covering Swedish workers. The strike has drawn support from other unions, including Seko, which has taken steps affecting electricity supply to certain Tesla facilities. Tesla Sweden, for its part, has insisted that its workers are already fairly compensated and it does not need a collective agreement,
Jesper Pettersson, press spokesperson for IF Metall, criticized Tesla’s use of generators to keep charging stations running. Still, IF Metall emphasized that it strongly distances itself from the vandalism incident at the Vansbro Supercharger.
“We think it is remarkable that instead of taking the easy route and signing a collective agreement for our members, they are choosing to use every possible means to get around the strike,” Pettersson said.
Tesla Cybertruck’s newest trim will undergo massive change in ten days, Musk says
Elon Musk’s Neuralink sparks BCI race in China
