Tesla's US Tax Credit Set To Come To An End

Tesla's US Tax Credit Set To Come To An End

Tesla opened the taps on Model 3 sales this week by dropping the exclusive reservations list it established past year, allowing anyone in the U.S.to order one of the small sedans with a $2,500 deposit.

As Indians eagerly await Tesla vehicles to hit the roads, Elon Musk, the CEO of the company, could now well be on his way to India. China already is Tesla's No. 2 market after the United States.

The Model 3 is Tesla's first mass-market vehicle, created to broaden the company's customer base beyond the luxury segment and increase the rate of electric vehicle adoption.

Tesla follows Harley-Davidson Inc in charting plans to expand outside the U.S. to circumvent tariffs under Mr Trump's escalating trade disputes.

A Tesla spokesperson said the company expects construction to begin "in the near future", with production beginning roughly two years later and another three more years before it reaches full production.

Last month, Musk sent an email to Tesla employees claiming that a disgruntled worker had broken into the company's computer systems and "conducted quite extensive and damaging sabotage to our operations".

Incidentally, Musk about a year ago said that Model 3 production should reach 10,000 units per week before the end of 2018. Apple, for example, this week sought the arrest of a former engineer accused of self-driving vehicle technology that he was set to provide to a company in China.

From the get-go, consumer interest in the Model 3 was vast, with early reservations even exceeding Tesla's most optimistic of projections. "I think it's really coincidental". As Tesla wrote in an annual report filed with the US Securities and Exchange Committee in February, its customers get the full $7,500.

Analysts noted that the announcement did not estimate the cost of the plant, or how it would be financed.

Tesla has struggled to ramp up production for the Model 3, which it launched in July of a year ago.

Earlier this month, CEO Elon Musk announced that the company had built 5,000 of the vehicles during the last week of the second quarter, meeting its revised production goal. But Tesla faces growing competition from Chinese and foreign brands that are developing dozens of electric models.

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