EV tax credit expiration will increase prices

The federal tax credit for EVs expires October 1.

Transcript

00:00Time is running out to get a cheaper EV.

00:03The $7,500 federal tax credit for EV buyers expires October 1st, as in next week.

00:09It was created under the Biden administration,

00:12but rolled back in President Trump's tax and spending package passed in July.

00:16That looming deadline has sparked a rush of buyers,

00:18because once the credit is gone, EVs effectively get more expensive overnight.

00:23Now, analysts say sales could cool sharply in the months ahead,

00:26and automakers may be forced to cut prices to keep demand alive.

00:30EV sales have been climbing for years, but the momentum is slowing.

00:34In the first half of this year, sales rose just 1.5%,

00:36and in the second quarter, they actually fell more than 6% from a year earlier.

00:41That's according to Cox Automotive.

00:43So automakers may keep offering sweeter deals,

00:46but for now, there's still time to scoop up that $7,500 in savings.

00:51That said, the clock is ticking.

00:53That'll do it for your daily briefing from the New York Stock Exchange.

00:57I'm Caroline Woods with The Street.