Tesla is continuing to warn consumers of a huge, time-sensitive change that is coming soon, as the end of the EV tax credit is less than two months away.
The EV tax credit has offered $7,500 off new EVs and $4,000 off used EVs for certain individuals who qualify due to income. For years, it has been a great incentive for consumers, and it has improved further as car companies were able to apply the credit at the point of sale starting in 2023.
Tesla is ready with a perfect counter to the end of US EV tax credits
However, with the Trump Administration, it always seemed as if the EV tax credit was in jeopardy. Earlier this year, the White House officially announced that it would do away with it completely.
On September 30, the tax credit will be abolished. In order to utilize it, customers will have to take delivery of their vehicle by that date. Orders placed before September 30 without delivery by that day will not be able to utilize the credit.
Tesla is truly pushing this point incredibly hard: the sooner an order gets in, the more likely you are to take delivery of the car by September 30.
If there ever was a time to yolo your car purchase, it’s now
– $7,500 fed tax credit is ending
– To take advantage, eligible buyers must take delivery (not just order) by Sept 30The sooner you order, the sooner you can pick it up
— Tesla (@Tesla) August 9, 2025
The end of the EV tax credit is something that has been looming on the minds of electric carmakers, consumers, and investors.
The $7,500 discount for buying a clean energy vehicle truly puts many of the cars in a much more affordable price range. Without it, the least expensive Tesla model will be the Model 3 Rear-Wheel-Drive, which starts at $42,490.
That price comes down to $34,990 with the tax credit, and brings the monthly payment down about $130, depending on how much money is put down.
Despite the change, CEO Elon Musk does not believe it will impact Tesla negatively. In fact, he has been in favor of getting rid of the EV tax credit for several years, believing it will actually work to Tesla’s advantage.
Take away the subsidies. It will only help Tesla.
Also, remove subsidies from all industries!
— Elon Musk (@elonmusk) July 16, 2024
In my view, we should end all government subsidies, including those for EVs, oil and gas
— Elon Musk (@elonmusk) November 14, 2024
Perhaps the most interesting thing that will come of this is how all EV makers will be impacted by the loss of credit. Musk believes Tesla will come out as the big winner here, especially as it plans to roll out new affordable models sometime this year.