EV sales soar as Trump axes $7,500 tax credit: ‘People are rushing out’ to buy, analyst says

## EV Sales Surge Before Tax Credit Deadline

Consumers are rushing to purchase electric vehicles (EVs) before the end of September to take advantage of federal tax credits. This surge in demand is driven by the upcoming expiration of tax breaks that significantly reduce the cost of EVs.

Here’s a breakdown of the key takeaways:

• Deadline Driven Sales: The rush to buy EVs is fueled by the September 30th deadline to claim tax credits worth up to $7,500 for new EVs and $4,000 for used EVs.
• Record Sales: July saw record-breaking EV sales, with nearly 130,100 new EVs sold, the second-highest monthly total ever. Used EV sales also hit a record high.
• Increased Market Share: EVs accounted for about 9.1% of total passenger vehicle sales in July, the largest monthly share on record.
• Model-Specific Success: Specific EV models like the Chevy Equinox EV, Honda Prologue, and Hyundai IONIQ 5 saw record sales.
• Price Parity Concerns: The tax credits help bridge the price gap between EVs and gasoline cars. Their removal could jeopardize price competitiveness.
• Dealer Incentives: Dealers are offering generous financial incentives to boost sales before the deadline.
• Future Outlook: Analysts predict a potential sales “collapse” in Q4 2025 after the tax credit expires, but the used EV market may continue to grow.

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