US EV Sales Surge in July Amid Tesla Price Cuts and Looming Tax Credit Expiration

July marked the second-best month for US electric vehicle sales, driven largely by Tesla's aggressive price reductions and the impending expiration of federal tax incentives. Tesla slashed prices by up to $5,000 on its Model Y, contributing to an 11% year-over-year drop in average EV transaction prices to $53,469.

Automakers offered record incentives averaging $4,564 per EV sold—nearly triple July 2024's levels—as the industry braces for the TRUMP administration's October 1 termination of the $7,500 federal tax credit. This created the strongest discounting environment since tracking began, with incentives accounting for 8.5% of average transaction prices.

Tesla's wait times for Model Y deliveries have extended to 4-6 weeks, signaling sustained demand ahead of the policy change. The sales rush underscores how regulatory timelines can dramatically influence adoption curves in emerging technologies—a dynamic familiar to cryptocurrency markets during tax seasons and regulatory announcements.