Want a Tesla? Buy it before the $7,500 tax credit gets cut in half

Tesla CEO Elon Musk will be the first to remind you that time is running out if you want a federal tax credit on a new Tesla vehicle.

After Dec. 31, a $7,500 tax credit on Tesla's all-electric vehicles will start shrinking. Next year, Tesla buyers can still apply for a tax credit, but it will only be half of the $7,500 awarded this year. The credit drops to again to $1,875 in the second half of 2019.

Tesla reached the threshold of 200,000 electric vehicles sold in July, which triggered the phase-out period of the tax credit. All Model S, Model X, and Model 3 vehicles delivered before Dec. 31 will receive the original tax incentive. Other electric car companies will continue to offer the full tax credit into 2019 until they hit the cap. Read more...