The announcement was first discovered by Jalopnik.
The phaseout was triggered when Tesla delivered its 200,000th auto to a customer in the US this week.
Farewell, tax credit, we barely knew ye. After that, the credits will halve, first to $3,750 in the first six months of next year, then to $1,875 in the second half of 2019.
On Tesla's website, under its electric vehicle incentives page, it shows that as of January 1, the federal tax credit for anyone who purchases a new Model S, X or 3 will be reduced to $3,750 from $7,500.
Tesla has also started changing its strategy for the Model 3. Then, from July 1 to December 31, it will be reduced again to $1,875.
Each manufacturer is allotted 200,000 credits before the phaseout begins.
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Currently, the lowest-priced version of the Model 3 on offer is a rear-wheel-drive edition equipped with a premium interior and long-range (310-mile) battery pack for $43,000, with deliveries estimated in three to five months.
Many of those same buyers who have not yet received their cars have waited for Tesla to follow through on its promise to build a auto for $35,000.
Last week, GM said demand for the Bolt in the United States, Canada and South Korea had "outstripped production" and that it would increase output in the fourth quarter by 20 percent.
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. Bloomberg's Model 3 production tracker has become more accurate over the past few months, with the system only being 2% off its estimates for Tesla's Q2 figures for the compact electric auto.
Tesla CEO Elon Musk said he slept on the floor of the company's vehicle-assembly plant because he wanted to suffer more than any other employee during the troubled production ramp-up for the Model 3 sedan, Bloomberg reported.
According to Bloomberg, Tesla may have delivered more vehicles to customers outside the U.S.in Q2 in order to avoid hitting the 200,000 USA delivery cap in that quarter and hit the cap in Q3. The Model 3, after all, would likely determine whether Tesla could achieve its target of becoming profitable this third or fourth quarter.