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 looming expiration of tax breaks, which could significantly impact the affordability of EVs. Here’s a breakdown of the key takeaways:

• Deadline Driven Demand: The tax credits, worth up to $7,500 for new EVs and $4,000 for used EVs, are set to expire on September 30th, leading to a surge in EV sales.
• Record Sales: July saw the second-highest monthly EV sales on record, with nearly 130,100 new EVs sold, a 26.4% increase from June and nearly 20% year-over-year. Used EV sales also hit a record high.
• Market Share Growth: EVs accounted for about 9.1% of total passenger vehicle sales in July, the largest monthly share on record.
• Model-Specific Success: Certain EV models, like the Chevy Equinox EV, Honda Prologue, and Hyundai IONIQ 5, saw record-breaking sales.
• Price Parity Concerns: The tax credits help bridge the price gap between EVs and gasoline cars. Without them, the price competitiveness of EVs is jeopardized.
• Dealer Incentives: Dealers are offering additional financial incentives to boost sales before the deadline.
• Future Outlook: Analysts predict a potential sales “collapse” in Q4 2025 after the tax credit expires. Used EVs are expected to be a bright spot.

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