As the deadline for a significant federal tax credit for electric vehicles (EVs) nears, many consumers are racing to purchase electric cars, leading to a notable spike in EV sales across the country.
At the Orange County Auto Show, held from Thursday to Sunday, attendees showed a marked interest in electric vehicles. Corinne Lawson and her husband, for instance, were drawn to the white Mustang Mach-E by Ford, a model that Lawson hopes could accommodate her family’s needs.
“It has a backseat for the grandkids,” said Lawson, a retired resident of Tustin, highlighting the family-friendly features of the electric Mustang.
With just days left before the $7,500 federal tax credit for new EVs and $4,000 for used ones expires on Tuesday, potential buyers at the auto show eagerly lined up to take test rides in the latest electric models, demonstrating a surge in demand fueled by the impending policy change.
John Sackrison, the executive director of the Orange County Automobile Dealers Association, noted, “We’re seeing a big spike in EV sales. There’s a window of time that’s running out, and we know it’s going to become more challenging for consumers to make the leap over to electric.”
Sales data reflects this trend. In May, prior to President Donald Trump’s announcement to eliminate the tax credit, 21% of new vehicles sold in Orange County were electric. This share increased to 25% in June and surged to 32% in July as consumers rushed to make purchases before the credit expired.
Nationally, sales of new EVs increased by 19% in July compared to the previous year, and J.D. Power forecasts that EVs will account for over 12% of all car sales this month.
The urgency to buy electric vehicles is compounded by President Trump’s implementation of fluctuating tariffs on imports, which has made overseas cars and parts more costly.
At Cadillac of Beverly Hills, nearly two-thirds of new vehicles sold are electric, according to product specialist Naeim Nastar, who reported a significant rise in electric vehicle sales in recent months. “We’re still selling gas cars, but most people who come in now are here to take advantage of the tax credit for electric,” he explained.
Advertising the urgency of the situation, Ocean Cadillac in Miami promoted their electric models on Instagram, urging followers not to miss out: “The $7,500 EV Tax Credit ends this month! This weekend is your chance to save big.”
While the auto show provided an opportunity for potential buyers to interact with various electric models like the Cadillac Lyriq, Optiq, and Escalade, it also showcased the hesitance of some shoppers. R.J., a resident of Murrieta who wished to remain anonymous, expressed concern about the timeline for her EV purchase, saying, “I was hoping to get that $7,500 credit, but I won’t have time to make my decision before it goes away.”
Analysts expect a considerable shift in the market following the tax credit’s expiration. Thomas King, president of the data and analytics division at J.D. Power, indicated in a recent analysis that a decline in EV sales is anticipated for October. “The effect on sales will shift from positive to negative,” he cautioned, adding that the excitement over purchases made leading up to the expiration would likely result in a significant downturn.
This anticipated downturn may prompt some potential buyers to reconsider their EV aspirations. Long Beach retirees Stacey and Jim Palma initially planned to purchase their first electric vehicle but altered their course after learning of the tax credit’s expiration. Jim shared, “We’re backing out a little because the rebates are going away. Our incomes are limited, and the incentive is not going to be there anymore.”
As consumers weigh their options amid the changing landscape of incentives, the push for electric vehicles is reaching a critical juncture, highlighting both the allure of green technology and the impact of federal policy on consumer behavior.
image source from：latimes
