Tesla's Quarterly Sales Skyrocket As EV Tax Credit Comes To An End

The time has come, the $7,500 tax rebate that helped move the needle on electric car sales has come to an end. As a result, EV manufacturers engaged in a big push to get cars sold before the tax rebate ran out. The most recognizable EV automaker of them all, Tesla, was no different. This strategy actually seems to have worked tremendously in Tesla's favor. 

Prior to the EV rebate's expiry date, Tesla sales were flagging a bit for any number of reasons. The fingers have pointed to the fact that Elon Musk is head of the company, to a rarely-refrshed lineup, to the relative punchline the Cybertruck has become. Additionally, worldwide EV competition is getting more heated. 

Tesla's second quarter earnings reports, according to the company, stated that the company delivered 384,122 cars over the entire lineup. The third quarter results are a lot higher at 497,099 deliveries. The tax credit push is likely the culprit for the sales explosion. 

Prior to the tax credit going away, Tesla (somewhat deceptively) bundled the $7,500 tax credit into the advertised price of eligible parts of its lineup, namely the Model Y and Model 3. That's even though the tax credit didn't apply to everyone and had its own set of stipulations. Now, Tesla's site, appropriately, makes no mention of it and the proper MSRPs are listed. The Tesla Model 3 sits at $42,490 and the Model Y will set you back $44,990, plus the $1,390 destination fee.

While there are many alternatives to Teslas, the sales bump shows that people are still interested in the company as a whole, even if it was just a roundabout way to secure a hefty tax refund. Just under half a million EV sales a quarter still puts Tesla at the top of the pack when it comes to numbers. 

Among other notable EV makers, the tax credit's demise has shaken things up as well. Hyundai, for example, lowered the price of its Ioniq 5 by $9,800, with the lowest priced model now starting at an even $35,000. The bad news is that the tax credit is over. The good news is, that it appears at least some automakers are picking up the savings slack.