Publication date:
July 11, 2025
Tesla and Ford Accelerate EV Sales Ahead of Tax Credit Expiration
Tesla and Ford are pushing to sell more electric vehicles before the $7,500 tax credit ends in September due to new legislation.
Energy
Major electric vehicle manufacturers Tesla and Ford are ramping up their sales efforts in response to the impending expiration of the crucial $7,500 tax credit for EVs. This urgency comes in the wake of President Trump's recently passed tax and spending bill, which sets September 30th as the deadline for customers to benefit from the tax incentive on new US-made EVs.
Tesla has taken a particularly aggressive approach, prominently displaying a banner on its website warning potential buyers about the approaching end of the tax credit. The company is also reported to be sending out targeted emails to prospective customers, urging them to complete their purchases before the September deadline to qualify for the tax benefit.
Analysts have previously cautioned that the removal of the tax credit, along with other measures in the new bill targeting renewable energy, could lead to increased EV prices and significantly impact Tesla's financial performance. However, Tesla CEO Elon Musk had argued last November that the removal of these incentives would ultimately benefit Tesla in the long run by disproportionately affecting its competitors.
Ford, meanwhile, has announced an extension of its complimentary home EV charger and installation offer through September 30th, coinciding with the tax credit expiration date. Stacey Ferreira, Ford's head of sales strategy in the US, emphasized that there has never been a better time to purchase an EV, citing the abundance of incentives currently available in the marketplace.
In addition to the charger offer, Ford has introduced a "zero-zero-zero" incentive program for select models, which includes zero down payment, zero payments for the first 90 days, and 0% interest for the initial 48 months. This program replaces an earlier incentive that offered employee discounts to all customers.
The automakers' strategies reflect a common trend observed in markets where tax credits for EVs have been phased out. Typically, there is a spike in interest from potential buyers who haven't yet committed to a purchase but are motivated by the impending loss of the financial incentive.
This push by major EV manufacturers underscores the significant role that government incentives play in driving the adoption of electric vehicles. As the industry approaches this critical juncture, it remains to be seen how the expiration of the tax credit will impact EV sales and the broader transition to electric mobility in the United States.
Tesla has taken a particularly aggressive approach, prominently displaying a banner on its website warning potential buyers about the approaching end of the tax credit. The company is also reported to be sending out targeted emails to prospective customers, urging them to complete their purchases before the September deadline to qualify for the tax benefit.
Analysts have previously cautioned that the removal of the tax credit, along with other measures in the new bill targeting renewable energy, could lead to increased EV prices and significantly impact Tesla's financial performance. However, Tesla CEO Elon Musk had argued last November that the removal of these incentives would ultimately benefit Tesla in the long run by disproportionately affecting its competitors.
Ford, meanwhile, has announced an extension of its complimentary home EV charger and installation offer through September 30th, coinciding with the tax credit expiration date. Stacey Ferreira, Ford's head of sales strategy in the US, emphasized that there has never been a better time to purchase an EV, citing the abundance of incentives currently available in the marketplace.
In addition to the charger offer, Ford has introduced a "zero-zero-zero" incentive program for select models, which includes zero down payment, zero payments for the first 90 days, and 0% interest for the initial 48 months. This program replaces an earlier incentive that offered employee discounts to all customers.
The automakers' strategies reflect a common trend observed in markets where tax credits for EVs have been phased out. Typically, there is a spike in interest from potential buyers who haven't yet committed to a purchase but are motivated by the impending loss of the financial incentive.
This push by major EV manufacturers underscores the significant role that government incentives play in driving the adoption of electric vehicles. As the industry approaches this critical juncture, it remains to be seen how the expiration of the tax credit will impact EV sales and the broader transition to electric mobility in the United States.
