EV sales hit record as tax credit end looms

US consumers rushed to buy electric vehicles in August, with a record 146,000 sold, as the $7,500 EV tax credit is set to expire on September 30.

A few months back, President Donald Trump signed the “One Big, Beautiful Act”, which, among other things, ended the Biden-era EV tax credit. The new law allows taxpayers to deduct up to $10,000 in auto loan interest from their taxable income.

Buyers are also rushing to use the $4,000 federal tax credit for used EVs under $25,000, which expires this month under the Trump law.

In July, used EV sales jumped 40% year over year, according to Cox Automotive. EVs reached a 9.9% market share last month, per the research firm.

Ford, GM, and Hyundai saw booming sales, but Tesla stumbled. The Elon Musk company’s US sales fell 6.7% year-over-year (YoY), dropping its market share to 38%—the lowest in eight years. This comes despite Tesla cutting prices by 5.5%.

Backlash from CEO Musk’s political activity, competition from rival EV makers, and a lack of new models in recent years have hit Tesla. Its global sales also faltered, declining 14% YoY in Q2.