Tesla is set to report its strongest quarter of 2025 on Thursday, thanks largely to a U.S. consumer rush to secure the now-expired $7,500 federal EV tax credit.
While the surge lifted sales in recent months, analysts caution that the momentum may be short-lived, with European weakness and reduced subsidies weighing on the company’s outlook.
Shares of Tesla (TSLA) rose 2.2% in Wednesday morning trading to $454.60. The EV stock is up more than 36% over the last six weeks.
U.S. Tax Credit Creates Tesla Surge
The end of the federal EV tax credit earlier this week pushed many U.S. buyers to accelerate Tesla purchases they might have made later this year. Wall Street analysts expect Tesla to deliver about 441,500 vehicles in the third quarter, though estimates vary.
“The $7,500 credit definitely should have some effect that pulled forward demand this quarter,” said Ken Mahoney, CEO at Mahoney Asset Management. “The credit’s expiry could leave a U.S. demand gap in the fourth quarter.”
Tesla also raised leasing prices in the U.S. after Congress ended incentives, reflecting the challenges of maintaining demand without federal support.
