Tesla Model 3 Performance: Musk announces more specs of future M3 rival

READ MOREElon Musk's mini-sub'not practical for Thai cave rescue

READ MOREElon Musk's mini-sub'not practical for Thai cave rescue

Farewell, tax credit, we barely knew ye. After that, the credits will halve, first to $3,750 in the first six months of next year, then to $1,875 in the second half of 2019.

According to Bloomberg, Tesla may have delivered more vehicles to customers outside the U.S.in Q2 in order to avoid hitting the 200,000 USA delivery cap in that quarter and hit the cap in Q3.

Until now, for example, Tesla has been focusing Model 3 production on effectively one core variant: the rear-wheel drive, Long Range pack with the premium interior.

Tesla has confirmed a phase-out schedule for federal income tax credits, which now serve as a $7,500 incentive to purchase any of the company's electric vehicles.

The incentives were created to boost electric vehicle sales by giving buyers a tax credit that would bring prices in line with competitive gas cars.

Each manufacturer is allotted 200,000 credits before the phaseout begins.

Those automakers like Tesla who were early to market would have a head start not only in building electric cars, but also in reducing their battery costs. The credit will expire for Tesla customers in January 2020. The production milestone was finally attained by the company during the final week of June, but it did not escape criticism from the company's doubters, some of whom predicted that the Model 3's 5,000/week "burst" production would be unsustainable.

For the first time since it started taking reservations for its new "affordable" Model 3, Tesla has opened up the car's configurator to the public.

Shares of Tesla were down 1.7% in trading Thursday after it confirmed a lucrative tax credit will end next year, making its electric cars more expensive for potential customers. According to an updated support page, anybody buying a Tesla Model S, Model X, or Model 3 now faces a few important dates which will impact just what tax credits they're eligible for. The Model 3, after all, would likely determine whether Tesla could achieve its target of becoming profitable this third or fourth quarter.

Latest News