image credit : Tesla

Major EV manufacturer Tesla’s reports reveal the company has now sold over 200,000 cars in the United States which although is a major milestone will now make the company non-eligible for the full $7,500 tax credits that its buyers have been getting as a perk for purchasing Tesla vehicles.

Tesla’s customers are still eligible for its full tax credit to this year’s end but starting from next year will be halved in two phases with the tax credits dropping to $3750 and $1875 in the first and second half of next year respectively before fully going out starting from the year 2020.

Along with Tesla, major automobile manufacturer GM also targets to sell its 200,000th electric vehicle by the end of this year which shows huge competition and growth from other competitors in the industry widely popularized and renowned with Tesla.

GM’s tax credit will also be phased out on reaching its 200,000th vehicle delivery in the U.S. This tax credits represents a major incentive to EV buyers and with its phasing out might affect EV sales from the companies although it’s currently unclear as to the level which the company’s EV sales might be impacted as these tax incentive goes away.

Along with Tesla and GM, Several major competitors in the electric car space have seen their sales increasing recently amidst major competition from several companies now expanding its offerings of electric cars.

Tesla produced a bit over 53,000 electric vehicles in the second quarter of this year according to its filing with more than half of these EVs being Model 3 sedans along with the output figure which indicates a 55% increase from the number of cars produced in first quarter which represents a major boost for the company.

Tesla also recently penned down a major deal which will see the company begin to manufacture electric vehicles in an upcoming vehicle assembly plant set to be built in China.