Automakers push EV sales as $7,500 US tax credit is set to end

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Detroit (Reuters) -Applicants for customers urge to capture electric cars before US tax credit worth $ 7500 this fall.

The Tesla Main page on Tuesday showed a banner: “7500 dollars ends the federal tax credit. Received September 30, 2025.”

On the same day, Ford Motor has extended its deal for free home and installed until the end of September to tempt shoppers EV.

The tax legislation and the overwhelming budget that congress approved will cancel $ 7,500 tax credits to buy or rent new electric cars and $ 4000 credit used at the end of September. Evance has strengthened EV sales in recent years, and some dealers and analysts expect that shoppers will speed up credit before its expiration.

“This is definitely a great time to think about EV,” Claire McDono, President of Revyan, said in an interview on Tuesday. Once the tax credits are over, Rivian may provide additional incentives, including financing deals, depending on how the broader industry interacts.

The demand for battery -running models has already slowed after rapid growth earlier in this contract. Sales can decrease after the credits are dry.

“The tax credit of $ 7,500 pays the request; without that, it will slow down,” said Marie Para, CEO of General Motors at an event in December 2024.

Vehicle vehicle records can decrease 27 % without tax credit, according to a joint study in November professors at the University of California, Berkeley; Duke University and Stanford University.

These political transformations affected the adoption of EV in other countries. EV sales decreased sharply in Germany after the end of subsidies in late 2023.

Congress approved tax credit worth $ 7,500 in 2008 for electric cars and hybrid vehicles. The 2022 credit inflation law extended, with a limited eligibility on the integrated EVS in the United States, which use certain levels of batteries and source materials locally.

“We believe that (the third quarter) will witness an important buyer EV, with sharp declines in the months to be followed,” Barclays analysts said in a note.

Dmitry Agabetov, sales manager at Northwood Chevrolet and Hunde, in Urika, California, was martyred in the main sales bumps in his agent before the last final dates, including in the spring, where buyers shopping to avoid high tariff prices. It expects a similar rise in sales this time.

“We expect to play a role,” he said.

Battery powered patterns can get a tremor that affects the need. EVS was a severe sale due to fears related to insufficient infrastructure and high prices, as surveys appear. A new EV was sold for about $ 58,000 on average in May, approximately $ 10,000, more than average new price throughout the industry, according to COX Automotive data.

The US President Donald Trump’s team has put strategies since late 2024, before its inauguration, on how to kill tax credits for electric cars. Some consumers took early notice and collided with their EV purchases.

“If anyone has not built EV yet, they are likely to be encouraged to purchase in the third quarter. Consumers believe that there is a final date to reach it now,” said Sam Fiori, Vice President of Autoforecast Solutions.

In the past, auto companies have increased consumer incentives to help compensate for the loss of tax subsidies. Ford reduced the prices on Mustang Mach-E after it lost tax credit worth $ 3,750 in January 2024 and sales decreased. General Motors offered an incentive of $ 7500 on vehicles that lost credits.

(I participated in Nora EcKERT reports in Detroit and Aprop Roy in San Francisco; Edit by Mike Collens and Richard Chang)