In Notice 2018-96 the IRS provided notice that the credit for Tesla manufactured plug-in electric vehicles will be phased-out during 2019.

The Notice provides:

Tesla, Inc. has submitted reports that indicate that its cumulative sales of qualified vehicles reached the 200,000- vehicle limit during the calendar quarter ending September 30, 2018. Accordingly, the credit for all new qualified plug-in electric drive motor vehicles sold by Tesla, Inc. will begin to phase out January 1, 2019.

The reduction in credit for Tesla vehicles will be phased in as follows:

If a new qualified plug-in electric drive motor vehicle sold by Tesla, Inc. is purchased for use or lease on or after January 1, 2019, the allowable credit is as follows:

(1) For vehicles purchased for use or lease on or after January 1, 2019, and on or before June 30, 2019, the credit is 50 percent of the otherwise allowable amount determined under § 30D(b);

(2) For vehicles purchased for use or lease on or after July 1, 2019, and on or before December 31, 2019, the credit is 25 percent of the otherwise allowable amount determined under § 30D(b);

(3) For vehicles purchased for use or lease on or after January 1, 2020, no credit is allowable.