Published: Mon, July 16, 2018
Finance | By Kristine Clayton

Ex-Tesla worker makes it official and blows the whistle to SEC

Ex-Tesla worker makes it official and blows the whistle to SEC

Earlier this year, amid concerns they could miss the federal tax break, some potential buyers of Tesla's long-delayed Model 3 sedan began seeking alternatives, including GM's Bolt, according to postings by would-be Tesla buyers on websites and interviews with GM dealers. On July 2, the company said it had made 5,031 Model 3s during the final week of June and 28,578 during the second quarter, more than it had made in the prior three quarters combined.

The Roadster almost brought Tesla to bankruptcy in 2008, but Musk has said the company closed a financing round that kept it afloat on December 24.

"A note from 24-7 Wall Street said the USD2.7 billion in cash on Tesla's balance sheet at the end of the first quarter hardly seems like enough", but the company likely would not have trouble raising funds in China. This was followed by an encouraging trend displayed by Bloomberg's Model 3 production tracker, which now forecasts that Tesla would be able to sustain its "burst" production rate of 5,000 vehicles per week for the next three weeks.

Tesla's Electric Vehicle Incentives page shows that the federal tax credit of $7,500 is valid for vehicles delivered on or before December 31, 2018.

The carmaker also has a giant battery factory in Nevada. There are still state-level incentives available, however, which Tesla has also laid out on its site. It would double the size of the electric vehicle maker's global manufacturing.

For example, a buyer today who purchases a Model 3 for $50,000 (representing a long-range battery, rear-wheel drive auto with the required Premium Package), would get a tax credit that will bring the effective price down to $42,500.

While tax credits have helped boost electric-vehicle demand in the US, they remain only 1.1percent of the market.

Dubbed "Gigafactory 3", the Tesla facility in China is expected to produce 500,000 electric vehicles per year - doubling the production capacity of Tesla.

Additionally, Tesla is gaining popularity in China. But as Musk neared a deal with Google CEO Larry Page, Tesla started selling enough vehicles to become financially stable, and Musk chose to keep Tesla independent. CEO Elon Musk, for one, noted on Twitter that the Model 3, while newer than the Model S, is not a superior vehicle.

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