[notlob]

> > > They timed production to maximize federal tax credits for US consumers.

This is what is confusing me: if the credits are timed to domestic sales (so international sales don’t affect the timing of the tax credit phase out) what does this have to do with production?

[njarboe]

If timed right, they have 6 months to sell cars after the 200k cutoff. Some people say they have been storing some cars and not selling them along with selling more overseas so that all the cars produced (and sold, but with the reservation backlog, this is the same thing for now) for the next six months can get the tax credit. It has to do with production because you can't have sales of cars that don't exist.

[toomuchtodo]

> It has to do with production because you can’t have sales of cars that don’t exist

Rather, you don’t want to rush to produce vehicles you don’t want to deliver quite yet. You want to get to maximum output at the same time the timer starts on federal tax credits phasing out (which, keep in mind, would’ve happened without Model 3 production due to 2k/week Model S and X production).

[andromeduck]

It doesn't.