"The IRS adjusted the EV tax credit rule last week, which was a big win for consumers. It now allows car buyers to lock up an agreement to buy a vehicle instead of having to take delivery before the deadline of September 30. This has tremendous advantages for both consumers and companies. For consumers, they are no longer rushed to take delivery of a car that might not be their exact pick just to qualify for the tax credit."
"Everyone is expecting EV makers' Q3 sales to be slightly higher than normal, as this is the final quarter when the $7,500 EV credit will be available. Buyers are rushing to take advantage of the credit before it expires. The urgency of car buyers to take advantage of the credit seems to be a positive in the short term. However, there are some indications that this could lead to a "boom-and-bust" cycle, and how EVs sell in subsequent quarters could be a very disappointing reality."
The IRS adjusted the EV tax credit rule to allow buyers to lock an agreement to purchase a vehicle before September 30 instead of requiring delivery by that date. Buyers can make a marginal down payment, build the exact vehicle they want, and take delivery after the deadline while still qualifying for the $7,500 credit. Carmakers gain flexibility to fulfill orders after the cutoff without being constrained by production or supply bottlenecks. The rule change may boost Q3 sales as buyers rush to claim the credit, but it risks creating a boom-and-bust cycle and obscures the underlying problem that electric vehicles remain generally too expensive.
Read at TESLARATI
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