The $7,500 EV Credit Is Gone, Now What?

Tonight at midnight marks the end of the $7,500 federal EV tax credit. For years, that credit helped make EVs feel attainable. Without it, prices jump and a lot of people sitting on the fence may hold back.

We already saw the rush: August was the biggest month for EV sales in US history, nearly 146,000 cars according to Cox Automotive. With credits and incentives, EVs even dipped below the average price of gas cars. Now that cushion is gone.

Sales will take a hit, some predict 25% or more. Automakers will have to respond with lower prices and better financing. The leasing loophole that let buyers of six-figure EVs grab credits distorted the market anyway, dragging down resale values. Losing it might actually help long-term stability.

The bigger picture is what matters. Ending credits is less about affordability and more about rolling back progress on clean energy. EVs aren’t going away, but this moment will separate the serious players from the half-hearted ones. For buyers, it becomes a choice based on the car itself, not just a discount. And for me, that’s the real test, who’s ready to commit for the long haul.

Stay tuned to RivianTrackr as we all work together to see what October holds for incentives and offers plus how this will impact R2 in 2026.