Deadline For $7,500 EV Tax Credit Sparks Last-Minute Buying Frenzy

A frantic race is underway across the United States as consumers scramble to purchase electric vehicles before the $7,500 EV federal tax credit expires. With a hard deadline of September 30, a last-minute buying frenzy has taken hold. For the time being, EV brands like Tesla are enjoying the boom, but could this lead to an industry crash in the near future?

Due to recent policy and legislative changes under the Trump administration, the federal EV tax credit is coming to an abrupt end. While the incentive had been a cornerstone of EV adoption under the Inflation Reduction Act, the new law effectively terminates the program entirely, pulling its scheduled expiration forward by several years. This has transformed a gradual phase-out into a sudden cutoff, sparking a sense of urgency for anyone on the fence about going electric.

Among the brands raking in the dough right now is Tesla. Such is the demand for its cars that over the weekend, it was reported that Model 3 and Model Y delivery dates previously at one to three weeks are now estimated at four to six months. This development may become a problem for customers because in order to qualify for the tax credit, they have to take delivery of their new cars by September 30, not just make a purchase by then. Elon Musk, CEO of Tesla was quick to advise on this fact in a recent X post, and even the reminder could be considered moot at this point.

The implications of this rush extend beyond individual consumers and a single brand. Industry analysts and auto experts are closely watching the market, anticipating a significant spike in third-quarter EV sales, followed by a sharp and sudden decline once the credit vanishes. A recent study projects that EV registrations could drop by as much as 27% in the months following the deadline, as a large segment of price-sensitive buyers exits the market.