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Tesla share crash amid Republican bid to kill off electric car tax break

Eddy Ito Silver badge

The crash is the result of knee jerk reactions of people who don't understand the credit anyway. Musk probably thinks it's a joke since the tax credit is limited to the first 200,000 units sold in the US for any given manufacturer. At the end of 2016 Tesla was already over the half way point at 110k+ US sales and if the same ratio of US sales to units built was maintained this year Tesla would be scheduled to limit out fairly early in the first quarter of 2018 if not later this year.

In short Tesla is already nearing the end of when its buyers could claim the credit anyway and if it happens a month earlier than expected it isn't going to change Tesla's situation much. On the upside the dip is now priced in instead of being priced in after they sold number 200,000 in the US which would be in about a month or two. Those of us who were already keyed in on this can now take our Tesla shorts early and move on to the next fully predictable market over-reaction.

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