Even as Tesla’s new Model 3 topped 276,000 reservations in a span of just three days, there are questions about whether the customers would be able to get a $7,500 federal tax credit for purchasing the electric car.

Many are even skeptical that non availability of federal tax credit for the electric cars could result in a lowdown of reservations for Tesla’s new car.

With the aim of incentivizing Americans to buy electric cars, the Plug-In Electric Drive Vehicle Credit was created in 2009. All the first 200,000 buyers of electric cars of every automaker in the US were offered the incentive of federal tax credit. The credit is however phased out after the manufacturer hits that electric vehicle sales number of 200,000.

“We believe Tesla will hit their 200,000th U.S. vehicle during 2018. So some Model 3s may still qualify for the credit, but most will not,” said Joe Spak, an auto analyst for RBC Capital.

The incentive is a very important issue for Tesla as the US is the largest market for its electric cars.

“Our production ramp plan should enable large numbers of non X/S customers to receive the credit,” said the company CEO Elon Musk in a tweet while trying to address the issue two days after unveiling the Model 3.

However experts keep wondering how many cars make up a large number. And the more important question for Tesla is what happens after the phasing out of the $7,500 federal tax credit. Would this ultimate phasing out have any impact on the sale of the Model 3? It should be noted that Model 3 has a starting price of $35,000.

Doubts were expressed by Matt Stover about whether people reserving a Model 3 in 2016 are thinking about a tax credit that is some two or three years away. Stover tracks the auto industry for Susquehanna International Group.

“I think 90 percent of them will still buy the car even after the tax credit goes away,” he said.

Model 3 requires an initial deposit of $1,000.

When automakers reach the threshold where the federal tax credit is eliminated, there is a chance that it could it be extended or replaced, predicts Stover.

“Don’t be surprised if some political force puts money in play so there is a compelling reason to buy electric vehicles,” he said.

The price of oil and the state of the US economy apart from how successful lobbyists are in either killing or extending incentives created to spur Americans to drive zero-emission vehicles would be important factors that would determine what would happen to the federal EV tax credit over the next couple years.

(Adapted from cnbc.com)