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 a looming deadline that will eliminate federal tax credits, according to auto analysts. This surge in demand is creating record sales figures, but experts predict a potential downturn once the incentives expire.

• Tax Credit Deadline: The federal tax credits for new and used EVs, worth up to $7,500 and $4,000 respectively, are set to expire after September 30th.
• Record Sales: July saw the second-highest monthly sales of new EVs on record, with nearly 130,100 units sold, a 26.4% increase from June and a nearly 20% increase year-over-year. Used EV sales also hit a record high.
• Model-Specific Success: Specific models like the Chevy Equinox EV, Honda Prologue, and Hyundai IONIQ 5 saw record-breaking sales. The Equinox EV, for example, had the highest monthly sales for any model outside of Tesla.
• Price Considerations: While EVs are generally cheaper over their lifecycle, they have a higher upfront cost. The tax credits help bridge the price gap, but their removal could impact affordability.
• Dealer Incentives: Dealers are offering generous financial incentives to boost sales before the deadline, with incentives averaging around $9,800 in July.
• Future Outlook: Analysts predict a potential “collapse” in EV sales in the fourth quarter of 2025 after the tax credit expires. Used EVs may be a bright spot, as most buyers don’t qualify for the incentive anyway.

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