Tesla is in luck, finally some good news! Orders for the Tesla Model Y have surged in the middle of August, like an oasis! And it’s not because of any special offer, or a new model, or technological improvements. The reason is much easier (and more urgent): the $7,500 tax credit is ending. And when something like that disappears, people rush, oh yes!
The federal tax credit for electric cars is on its last legs. Specifically, this quarter will be the last in which buyers can benefit from the star discount that helped thousands of people make the leap to electric. Starting from the fourth quarter of 2025, goodbye assistance. And it’s triggered all the alarms…
A last-minute push before the cut
What’s happening is easy to understand: those who were hesitating about buying an electric car (a Tesla, of course) are now hitting the purchase button before the subsidy disappears. And the result is already noticeable: Tesla has doubled the waiting times for the Model Y, going from 1–3 weeks to 4–6 weeks. Translation: they can’t keep up. And Musk loves that!
But careful, not everything is good news. This spike in orders could just be a temporary bump, a kind of breath before a longer fall… What in economics they call a “dead cat bounce”: something looks alive for a moment, but it’s just the echo before the final crash.
And what happens after the subsidy ends?
That’s the big question. Because once that $7,500 discount is gone, many people might start having second thoughts. Is it still a good idea to buy a Tesla without that help? Will prices drop? Or will we see a fall in sales?
Elon Musk himself has already warned that “tough quarters” are coming, especially now that Tesla is also in the middle of transitioning with its autonomous driving technology.
Tesla had it all. Does it still?
In recent years, Tesla has been synonymous with innovation, the future, electric cars with soul, and strength. But now the competition is pressing, prices aren’t as aggressive anymore and Musk’s public image is starting to take a toll… So, this spike in orders due to the subsidy might be the last gasp before the downhill.
A more competitive market than ever
And meanwhile, rivals are not sleeping, of course not! Brands like Hyundai, BYD or Volkswagen are launching cheaper electric models, better suited to the average budget… And without a tax break in the mix, Tesla will have to fight them on equal footing.
What happened to Tesla in 2025?
2025 has not been the year. The brand has been under the spotlight of the entire planet, first because of Musk’s political decisions, it’s been one controversy after another since he got the position in the DOGE and, from there, things haven’t improved. At the same time, the technologies he intended to implement with autonomous driving have been a complete disaster, and have made the little trust consumers had in his vehicles disappear.
And not only that, but many consumers have started to question whether it’s really worth spending what a Tesla costs or if maybe it’s better to start betting on their Chinese competitors, good quality, more affordable prices and the latest technology under the wheel.
What’s going to happen now?
The big question is whether Tesla will know how to adapt to a market without aid. Until now, the tax credit was a sort of invisible lifeline that helped keep sales steady. Without it, either prices go down or something truly different has to be offered.
For now, the only certain thing is that those who wanted a Tesla with a subsidy are buying now, before it’s too late, go grab yours too!