/ by Damon Lavrinc

Those sales look achievable for now given a long waiting list from wealthy, environmentally conscious buyers. More troubling is what drives Tesla’s margin. With state and federal subsidies of $10,000 per car sold in California and state emissions credits potentially worth thousands more, much of that profit could be erased in a few strokes of a government pen.

Battery-Driven Tesla May Run Out of Juice

Five-figure tax incentives for buyers (at least in California) won’t last forever. But when they go away, Model S buyers won’t be the ones affected. Those drivers have the cash to splurge on a luxury EV and pay the early adopter premium. However, when Tesla’s mass-market model arrives and those incentives aren’t around, will a 3 Series-priced EV still have the same appeal? I think so, but the market may prove me wrong.