Tesla hits 200,000 cars, meaning lower tax credit for buyers

Under a major tax overhaul passed by the Republican-controlled U.S. Congress late last year, financial incentives in the way of tax credits that lower the cost of electric vehicles are available for the first 200,000 such vehicles sold by an automaker. The tax credit is then reduced by 50 percent every six months until it phases out. From Jan. 1 next year, the $7,500 tax credit will drop to $3,750 around mid-year, the Tesla website said.