President Trump and Tesla CEO Elon Musk publicly promoted electric vehicles in March, but their relationship cooled by summer and the red Tesla purchased left White House grounds. Congress enacted the One Big Beautiful Bill that withdraws federal support for EVs, and the $7,500 EV tax credit was slated to expire at the end of September. JD Power projected EVs would reach 12.8 percent of U.S. sales in August as buyers rushed to lock in the credit. The IRS clarified qualification requires contracts and deposits before October. Analysts predict a likely slowdown after September, with outcomes depending on automaker and dealer responses.
The spike in electric interest mostly stems from the death of the $7,500 EV tax credit, analysts say, which was given a death sentence when Trump signed the GOP-supported OBBB on July 4 and is set to expire at the end of September. Buyers interested in EVs seem to understand that they should get into dealership lots and showrooms ASAP to take advantage of that now-temporary deal.
(The IRS clarified last week that while buyers have to sign their contracts and put down a payment on their EVs before October to qualify for the credit, they don't necessarily need to take delivery of the vehicle, giving tardy buyers a bit more time to secure their electric deals.) But the tick up in EV sales isn't permanent. Analysts expect US EV sales may fall back to earth after September.
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