US President Donald Trump’s “big, beautiful bill” is set to expire its tax credits for electric vehicles (EVs) after September 30. This marks the last day for buyers to purchase an eligible EV and claim a credit worth up to $7,500 for new vehicles or $4,000 for used ones.
The credit has been crucial in making EVs more affordable and competitive with mid-priced gasoline vehicles. However, its expiration may affect some manufacturers differently. To qualify for the credit, a vehicle must meet several criteria, including being manufactured in North America and having a significant portion of its battery components produced locally.
Only 20 new vehicle models currently qualify for the credit, which includes popular brands like General Motors, Stellantis, and Tesla. Manufacturers that will be impacted by the expiration include those with luxury EVs, such as BMW and Mercedes.
Despite this, some manufacturers may not see a significant decrease in sales. Those focused on producing affordable models could continue to thrive as the gap between EV and gas-powered vehicle prices narrows. Conversely, luxury brands like Lucid may benefit from the lack of available tax credits.
As a result, EV sales are already surging, with over 130,000 new electric vehicles sold in July and 36,700 used ones changing hands in record numbers. The expiration of the tax credit will likely have varying effects on different manufacturers, but overall, it’s a sign that consumer interest in EVs remains strong.
Source: https://www.fool.com/investing/2025/08/24/all-electric-vehicle-investors-need-to-mark-their