Tesla has faced some challenges in the first half of 2025 when it comes to deliveries. However, the company is poised for a potential turnaround in the third quarter, with the United States playing a significant role in boosting sales.
Recently, the House of Representatives in the United States passed President Trump’s “Big Beautiful Bill,” which is expected to be signed into law before July 4. This bill will bring an end to the $7,500 EV tax credit, a move that could impact the affordability of electric vehicles for consumers. The tax credit is set to expire on September 30, 2025, making EVs more expensive for buyers who qualify for the credit.
President Trump’s administration has been vocal about ending the EV tax credit, citing a shift towards fossil fuels and criticizing what he calls an “EV mandate.” Despite this decision, consumers have a limited time to take advantage of the tax credit before it expires.
For Tesla, the end of the tax credit could present both challenges and opportunities. With their high volume of sales, Tesla stands to benefit from a surge in demand as consumers rush to make their purchases before the credit expires. By offering incentives such as 0% APR financing, special leasing deals, or limited-time promotions like free Red, White, and Blue colors in celebration of Independence Day, Tesla could attract more buyers in the coming months.
Tesla is currently below its target of 721,000 deliveries for the year, but is on track to reach around 1.4 million deliveries by the end of 2025. While this would be a decrease from previous years, Tesla’s strongest quarters traditionally occur in the second half of the year. With strong delivery numbers in Q4 2024 and Q3 2024, Tesla has the potential to finish the year on a high note.
Overall, the end of the EV tax credit in the United States presents a challenge for Tesla and other EV manufacturers. However, with strategic marketing and promotions, Tesla could capitalize on the limited-time opportunity to boost sales and solidify its position in the electric vehicle market.