Whoops — US EV Tax Credits Ended Sooner Than Expected In Big Bad Budget Bill - CleanTechnica

The recent “One Big Beautiful Bill” (nicknamed the Big Bad Budget Bill) has accelerated the end of U.S. electric vehicle (EV) tax credits, terminating them on September 30, 2025, much earlier than initially anticipated. This change is expected to trigger a surge in EV purchases in the current quarter as consumers rush to take advantage of the incentives before they expire. However, after this date, the U.S. EV market is likely to face a significant downturn due to the loss of these financial incentives. There is speculation that automakers might offset the loss of tax credits by lowering EV prices, but this seems unlikely given that many manufacturers are not yet profitable on their EV programs. Tesla, often seen as a potential beneficiary due to its EV-only lineup, may also struggle since its sales have recently declined and its profit margins have shrunk considerably. The article suggests Tesla may not have the financial flexibility to reduce prices substantially, meaning it too could experience a notable drop in U.S