This could put Tesla at a disadvantage, especially as its larger, and more efficient rivals like Mercedes-Benz, Audi, and Jaguar begin ramping up their own EV production. Those vehicles will hit dealerships starting in 2019 with the full EV tax credit as a lure. It could also mean a frantic push for Tesla in the fourth quarter of 2018 to keep production and demand in line.
The loss of the tax credit is likely to be a big disappointment for anyone hoping to get a discount on the promised $35,000 base version of the Model 3. Tesla won’t begin producing the cheapest version of its most affordable car until mid-2019.