Tesla UK Sales Soar 14% in June Amidst Looming US Tax Credit Expiration

Tesla's UK sales experienced a significant 14% year-over-year rebound in June, according to data from the Society of Motor Manufacturers and Traders (SMMT). This positive turn comes after a challenging start to 2025 for the electric vehicle giant, hinting at a potential strong third quarter driven by various market dynamics.

US Tax Credit Expiration Looms

A major factor influencing EV sales, particularly in the United States, is the impending expiration of the $7,500 EV tax credit. The "Big Beautiful Bill," recently passed by the US House of Representatives and awaiting President Trump's signature, will end this credit on September 30, 2025. This creates a limited window for consumers to benefit from the incentive, potentially driving a surge in purchases.

• The tax credit is available to single filers earning under $150,000, heads of household under $225,000, and couples filing jointly under $300,000.

• The end of the credit aligns with the Trump administration's policy shift towards fossil fuels, moving away from what it terms an "EV mandate.

Tesla's Strategic Response

To capitalize on the urgency created by the expiring tax credit and boost sales, Tesla is expected to implement various incentives. These strategies could include:

• 0% APR financing options.

• Special pricing for leasing or financing.

• Unique promotional offers, such as free custom paint colors (e.g., Red, White, and Blue for Independence Day celebrations).

Q3: A Potential Turning Point

Despite a slow first half of 2025, with approximately 721,000 deliveries putting Tesla on pace for 1.4 million for the year (a decrease from 1.8 million in the previous two years), the second half traditionally sees stronger performance. The third quarter, in particular, could be a record-breaker, especially with the US market's anticipated rush to purchase EVs before the tax credit ends.

• Tesla's Top Delivery Quarters:Q4 2024: 495,570 vehiclesQ4 2023: 484,507 vehiclesQ3 2024: 462,890 vehicles

Key Takeaways

• Tesla UK sales rebounded by 14% year-over-year in June.

• The US $7,500 EV tax credit is set to expire on September 30, 2025.

• This expiration is expected to drive a significant increase in EV purchases in the US during Q3.

• Tesla is likely to offer various incentives to maximize sales during this period.

• Q3 2025 could be one of Tesla's strongest quarters for deliveries, potentially reversing a slow start to the year.