Tesla urges customers to get a new EV before September 30 to claim tax credit

Tesla has entered into aggressive mode and is informing customers to get a new electric vehicle (EV) before September 30, 2025, in order to receive tax credit benefits. The company has made some new changes on the official website to show “$7,500 Federal Tax Ending.”

This move comes after the US government announced a dramatic shift from an EV-only policy and focus on full-blown automotive industry development, including fuel vehicles. A new bill that aims at economic reforms and cuts spending, including the exclusion of the federal tax credit for EV purchases.

Tesla Federal Tax Credit ending on September 30

The federal tax credit allows new energy vehicle customers to get $7,500 and $4,000 on used EVs, which were introduced during the Inflation Reduction Act of 2022. This bill was introduced to make EV affordable, spurring adoption and reducing greenhouse gas emissions.

In 2024, 87% of the EV buyers cited the credit as a key factor in their purchase, according to J.D. Power’s E-Vision Intelligence Report. On the other hand, Trump and his supporters pledged otherwise and caused massive spending from federal budgets.

The end of the EV tax credit announcement has already started a spree in new purchases. Dealerships across the country saw a spree in new purchases to take upfront benefits.

Tesla is one of the prominent beneficiary of the EV tax credit as the largest EV seller in the US. However, ending these subsidies will affect its vehicles prices and make them even more costier than ever before. On the other hand, Musk has been in favor of ending these subsidies all at once.