Tesla and other car companies have been "heavy hit"! U.S. electric vehicle tax credit ends on September 30

Source: Cailianshe

**U.S. Electric Vehicle Tax Credits to Expire as "Big & Beautiful" Bill Becomes Law**  

With President Trump set to sign the "Big & Beautiful" bill into law on Friday, the U.S. electric vehicle (EV) tax credit program will come to an abrupt end.  

**Key Changes:**  
- **EV Credit Termination**: The $7,500 tax credit for new EV purchases/leases and $4,000 for used EVs will expire **September 30**.  
- **Legacy Auto Boost**: Traditional automakers benefit as the bill scraps penalties for failing to meet fuel economy standards, easing gasoline vehicle production.  

**Impact on EV Makers:**  
- **Tesla Hit Hard**: Losing the credit could cost Tesla ~$1.2B annually (17% of 2024 projected profits), per JPMorgan. Shares have fallen nearly 10% since last week.  
- **Musk vs. Trump**: The Tesla CEO slammed the bill as "insane and destructive," while Trump accused Musk of being "the most subsidized entrepreneur in history."  

**Market Reactions:**  
- **Short-Term Spike**: Barclays predicts a Q3 EV sales surge as buyers rush to claim credits, followed by a sharp drop.  
- **Long-Term Slowdown**: Harvard research estimates the policy change will reduce EV adoption by **6 percentage points by 2030**, though saving the government $169B over a decade.  

**Industry Backlash**:  
The Electrification Coalition condemned the move, arguing it "cedes U.S. leadership in the EV transition." Analysts note the shift weakens both incentives for EVs ("carrots") and penalties for gas vehicles ("sticks").  

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