A looming deadline to claim the $7,500 federal EV tax credit has sparked a buying frenzy, and Tesla is already reaping the benefits.
The great EV buying frenzy has officially begun. In the last 48 hours, Tesla has seen delivery times for some of its most popular models skyrocket from a few weeks to nearly six months, a clear signal that consumers are stampeding to buy an electric vehicle before a crucial federal tax credit disappears for good.
This is the short-term sales boom that experts have been predicting, a last-chance gold rush for buyers. But for the EV industry, it’s also a sugar rush that could lead to a brutal crash.The Deadline That Sparked the Madness
The cause of the chaos is the impending expiration of the federal EV tax credits. The credits—a key part of the Biden-era Inflation Reduction Act (IRA)—provided a $7,500 incentive for a new EV and $4,000 for a used one, significantly lowering the barrier to entry for many buyers. Losing them overnight makes many deals uneconomical, especially for first-time EV buyers.
Under the “One Big Beautiful Bill” signed by President Donald Trump on July 4, those credits will officially end on September 30. After that date, the price of a new EV will effectively jump by $7,500 overnight.
Anticipating this, automakers have been bracing for a surge of consumers looking to lock in the savings. Now, the first signs from Tesla, the undisputed market leader, prove the experts were right.
