Buyers rush to dealerships as EV federal tax credit expires

In the United States, the expiration of a significant federal tax credit for electric vehicles (EVs) has led to a notable increase in car sales at Bay Area dealerships. The $7,500 federal credit, which was an incentive for consumers to purchase new electric or plug-in hybrid vehicles, ended on September 30, 2025. As the deadline approached, dealerships across the region experienced a frenzy of activity, with buyers eager to secure the benefits before they disappeared. At the Audi dealership in Oakland, general manager Daniel Kosset reported an unprecedented rush, marking a season of intense mobility in the electric vehicle market. This tax credit was part of the Inflation Reduction Act, which aimed to promote the adoption of greener technology. Once the credit was announced in 2022, many car manufacturers projected their future sales heavily around electric vehicles, with expectations that a substantial percentage of their sales would derive from this sector. However, with the recent announcement of the expiration and the confirmation from California Governor Gavin Newsom that no new replacement rebate would be introduced, automakers have begun to reevaluate their sales strategies and plans for inventory. As a result of the credit’s expiration, dealerships like Audi saw their electric vehicle inventories drastically reduced. Kosset noted that a month prior, 75 electric vehicles were on display on the lot, but by the deadline, very few remained. The urgency from buyers underscored a growing desire to take advantage of government incentives before they vanish, reflecting both concerns about future pricing and an unmistakable shift in consumer behavior towards electric options amidst looming changes. Amidst this buying spree, executives from companies like Electrify America emphasized the need for expanding EV charging infrastructure to support the growing number of electric vehicles on the roads. Jigar Shah, director of energy services at Electrify America, highlighted the imperative for reliable and accessible charging stations. As charging infrastructure becomes increasingly critical, companies are stepping up their efforts to improve experiences and reliability for EV users. Many consumers have reported that the lack of charging stations remains a significant barrier to further adoption of electric vehicles, and companies are working collectively toward solutions to guarantee comprehensive coverage and efficient charging solutions for current and future electric vehicle owners.