Tesla first to sell over 200,000 EVs in US

Tesla US tax credits for buyers going as Tesla outsells other brands

In the past month, most Tesla watchers have been nattering positively or negatively about Musk’s consideration of taking Tesla private and resulting decision not to, the Joe Rogan interview and the Thailand caver situation. But there’s been another big news story that is worth looking at now that some of the dust has settled: Tesla broke 200,000 car sales in the USA.

Oddly, Tesla didn’t announce this as a great milestone, but as a tax credit concern. There’s a reason for that, of course. The US federal tax credits for plug-in electric vehicles have a volume threshold. As soon as a company sells 200,000 plug-in electric vehicles in the USA, the tax credit has a time limit and starts ramping down.

As Tesla points out, the credit doesn’t disappear immediately, or even get reduced in 2018. But it does raise the question: will Tesla sales be impacted by this, especially as it is the first car company to hit this threshold?

The answer appears straightforward. They are going to continue to outsell every other car in their categories and many cars below their categories. They are just better and more desirable vehicles.