GM hits 200K electric vehicles sales in US, triggers tax-credit phase-out

General Motors (GM) reached 200,000 in electric vehicle sales in 2018, prompting the phasing out of a tax-credit for buyers of those vehicles, according to Reuters.

GM hit the 200,000-mark in the fourth quarter of 2018, Reuters reported Wednesday, citing a person briefed on the matter.

The $7,500 tax-credit, according to Reuters, will be phased out over the next 15 months. It will drop to $3,750 in April before sliding to $1,875 in October. It will then be completely gone by April of next year, Reuters reported.

ADVERTISEMENT

GM, which has previously lobbied Congress to extend the tax-credit, declined to comment to Reuters.

The phasing out of the tax-credit comes after GM in November announced it would cut 15,000 jobs and close up to four factories in the U.S. 

Those layoffs drew the ire of President TrumpDonald John TrumpTrump claims media 'smeared' students involved in encounter with Native American man Al Sharpton criticizes Trump’s ‘secret’ visit to MLK monument Gillibrand cites spirituality in 2020 fight against Trump’s ‘dark’ values MORE, who said last month that the company is "not going to be treated well" following the layoffs.

"To tell me a couple of weeks before Christmas that she’s going to close in Ohio and Michigan, not acceptable to me," Trump said in a Fox News interview at the time, referring to GM CEO Mary Barra.

Barra has previously called on Congress to expand the tax credit, Reuters noted.

“We feel tax credits should be expanded so our customers continue to receive the benefit going forward,” she said in March, according to Reuters.

Electric car maker Tesla is also having its tax-credit phased out for consumers.

Tesla reached the 20,000-mark in July, and the phasing out of its tax credit is beginning this month, according to CNN. The credit drops 50 percent for the first six months of 2019 and another 50 percent for six months after that, CNN reported.