Tesla is urging customers in the United States to place vehicle orders soon, as the current federal electric vehicle (EV) tax credits are set to expire at the end of the third quarter. The $7,500 incentive for new EVs and the $4,000 credit for used EVs are both scheduled to phase out by September 30, prompting the automaker to introduce a range of purchasing incentives to boost Q3 deliveries.
“Given the abrupt change, we have a limited supply of vehicles in the US this quarter,” Tesla Chief Financial Officer Vaibhav Taneja said during the company’s second-quarter earnings call. “As we are already within lead times to order parts for cars, we have rolled out all our planned incentives already and will start pairing them back as we start to sell. If you are in the US and looking to buy a car, let’s roll now as we may not be able to guarantee delivery for orders placed in the later part of August and beyond.”
The expiration of these tax credits—originally planned under the Trump administration—affects several Tesla models, and industry-wide could make EVs less accessible to price-sensitive consumers. Tesla has responded by launching incentives including 0% APR financing on select models, lease offers, and complimentary upgrades on inventory vehicles.
However, the automaker emphasized that no additional incentives will be introduced this quarter. Executives said the promotions were intended to motivate early orders, ensuring deliveries before the September 30 deadline to qualify for the federal credit.
Tesla also confirmed plans to introduce new, more affordable models in the fourth quarter. According to company leadership, an earlier launch could potentially cannibalize sales of existing models such as the Model 3 and Model Y, making the Q4 timing more strategic.