Is Tesla's Stock at Risk Without the EV Tax Credit?

Core Insights - The expiration of federal electric vehicle (EV) tax credits is significantly impacting the EV market, particularly affecting Tesla, which has seen its shares drop 45% in 2025, reaching a low of $214 in April [1] - Tesla reported a 16% decline in quarterly sales for the second consecutive quarter, with year-over-year declines in revenue and vehicle deliveries [3][9] - CEO Elon Musk indicated that the company may face several "rough quarters" due to tariff-related cost increases and the impending expiration of the tax credit [4] Tax Credit Details - Federal EV tax credits, introduced in 2009, currently provide $7,500 for new EV purchases and $4,000 for used vehicles [6] - These credits are set to expire on September 30, following the passage of President Trump's legislation, although consumers can still receive the credit if their vehicle is delivered after this date, provided the purchase occurs before the deadline [7] - In 2024, the U.S. government spent over $2 billion in federal tax credits for more than 300,000 EV purchases, suggesting a potential spike in sales before the expiration [8]