Tesla is nearing their 200,000 vehicle tax credit threshold, which means its about to enter their phase-out period. This will likely result in a price spike for the vehicle line.

Currently, you can get a $7,500 credit on a Tesla electric vehicle. Once December 31 hits, this will be reduced to $3,750 for six months. After that, it will become $1,875. Once we enter 2020, the credit will disappear entirely.

The tax credit was to help electric cars compete with the price of traditional vehicles using internal combustion engines. Every automaker is eligible for this credit on their first 200,000 electric vehicles. Since Tesla is exclusively electric, it makes sense that they would hit this marker first. General Motors are expected to reach this marker next, due to sales of the Chevrolet Volt plug-in hybrid and battery-electric Chevrolet Bolt EV.

With the way the industry is leaning toward electric vehicles, this story is going to become increasingly more common. Currently, a bill is working its way through the U.S. House of Representatives to extend the tax credits for another 10 years, and also turn the incentive into a point-of-sale discount. However, it's unclear if such a bill will ever pass through both chambers of congress.