Tesla stock price predictably falls again
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Sweeping tax and budget legislation approved by Congress will eliminate $7,500 tax credits for buying or leasing new electric vehicles and a $4,000 used-EV credit at the end of September. The subsidies have boosted EV sales in recent years, and some dealers and analysts expect shoppers to rush to take advantage of the credit before it expires.
Why it matters: The elimination of the EV tax credits will likely result in lower sales volumes for Tesla after the credits expire, especially in 2026. The decline is likely to be industrywide, as we expect US EV sales to decline in 2026, similar to other countries following a subsidy cut.
Recent social media barbs between the president and the EV maker’s chief executive have investors worried again. Here’s the latest.
Tesla tugged on the market as the relationship between its CEO, Elon Musk, and President Donald Trump soured even further. Once allies, the two have clashed recently, and Trump suggested there’s potentially “BIG MONEY TO BE SAVED” by scrutinizing subsidies, contracts or other government spending going to Musk’s companies.