UPDATE: Tesla is making an urgent plea to potential U.S. buyers: order your electric vehicle *now*. The company has reported a significant limitation in vehicle supply this quarter, driven by impending changes in tax legislation that could drastically impact future deliveries.
During an earnings call on Wednesday, Tesla’s chief financial officer, Vaibhav Taneja, confirmed that President Donald Trump‘s recent tax law changes will end the $7,500 EV tax credit for buyers starting September 30. “If you are in the U.S. and looking to buy a car, place your order now as we may not be able to guarantee delivery for orders placed later in August and beyond,” Taneja stated, emphasizing the urgency of the situation.
Earlier this month, the House passed the final version of Trump’s “Big Beautiful Bill,” which extends tax cuts from 2017 and makes significant changes to the tax system. Analysts predict that the elimination of the EV tax credit will favor smaller competitors like Lucid and Rivian, who are less reliant on such incentives.
Tesla’s latest quarterly report revealed a sharp revenue decline, reporting $22.5 billion for the second quarter, falling short of Wall Street expectations of $22.64 billion. The company also recorded earnings per share of 40 cents, below the forecasted 42 cents, triggering a stock decline of over 4% in after-hours trading.
The urgency for potential buyers is compounded by the company’s plans to reduce incentives as it navigates this challenging landscape. Following the tax law’s passage, Tesla introduced new perks, including free supercharging on select models and discounts for military members, teachers, and first responders, referred to as “American heroes.”
On the earnings call, CEO Elon Musk described the current phase as a “weird transition period,” grappling with the expiration of incentives and the evolving regulatory environment for autonomous vehicles. Additionally, Taneja highlighted that tariffs imposed by the Trump administration have further raised costs, estimating an impact of around $300 million this quarter.
With over 384,000 vehicles delivered in the last quarter, Tesla aims to maintain its momentum despite these challenges. However, the combination of limited supply and the loss of the tax credit could significantly alter the buying landscape in the coming months.
Consumers are encouraged to act swiftly as Tesla navigates this unpredictable environment. The window for favorable purchasing conditions is closing fast, and the implications for both Tesla and its customers are profound.
Stay tuned for more updates as this situation develops.
