Summary
Electric vehicle (EV) sales in the U.S. surged ahead of the September 30 deadline for federal tax credits. These credits, offering up to $7,500 for new EVs, were cut short by a new law, prompting consumers to buy quickly. The spike in sales is expected to taper off after the deadline.
Key Facts
- U.S. federal tax credits for new EVs can be up to $7,500, but these expire on September 30.
- The tax credit requires a binding contract by the deadline, though vehicle delivery can occur later.
- EV sales increased sharply as buyers rushed to use the tax credit before it expired.
- A forecast showed a 21.1% increase in EV sales for the third quarter compared to last year.
- In August, EV sales made up more than 11% of the U.S. market.
- Vehicles eligible for used EV tax credits, especially those priced under $25,000, are selling fast.
- Analysts predict a temporary decline in EV sales after the tax credit deadline.
- Major automakers continue investing in EVs despite the end of the tax credits.
