Tesla's new objective to move the 500K vehicles/per year from 2020 to 2018 has many implications. But here's one that may not be so obvious: 1. By 2020, Tesla would have most likely passed the 200K US shipment mark and begun the phase-out cycle for the customer $7,500 tax credits. Perhaps only 100K US customers of Model 3s would qualify for the full tax credit based on the 2020 ramp to the 500K/year production rate. 2. By moving high volume production up two years, several hundred thousand customers would likely be able to qualify for the $7,500 or $3,750 tax credits. To eliminate uncertainty, Tesla could even guarantee it at the time of ordering. What does this mean? While it's obviously good for customers and reduces the number of potential cancellations and purchases of competitive vehicles, it also puts $3,750 or $7,500 extra dollars in the pockets of buyers...or in their potential use of this "free money" to use to option-up their Model 3s. So lets assume that due to the new production schedule, 300K "additional" vehicles qualify for an average of $5,000 in tax credits. And that 200K of these buyers used $4,000 of that credit for options that they might not otherwise purchase. This is $800M. And if Tesla makes only 50% average on these options, this becomes $400M of extra profit to Tesla. Not bad. While one can certainly challenge my top-of-my-pinhead numbers, my point is that this is yet another incentive for Tesla to move up their high volume production schedule. Good for everyone but Tesla's competition (and the US taxpayers who foot the tax credits).