Tesla Urges Buyers to Order Now Amid Supply Shortages and Tax Changes
Tesla is sending an urgent message to potential buyers across the United States: Order your vehicle now due to significant supply limitations this quarter. During an earnings call on Wednesday, Tesla’s chief financial officer, Vaibhav Taneja, warned that the impending end of the $7,500 EV tax credit could severely impact availability and delivery timelines.
As the clock ticks down to the September 30 deadline for the tax credit, Taneja emphasized, “If you are in the US and looking to buy a car, place your order now as we may not be able to guarantee delivery orders placed in the later part of August and beyond.” This announcement comes amid a backdrop of recent legislative changes, including the passage of President Donald Trump’s tax bill, which analysts believe may favor smaller electric vehicle companies like Lucid and Rivian over Tesla.
Tesla’s supply constraints are exacerbated by a 4% drop in stock prices following the earnings report, which revealed a quarterly revenue decline to $22.5 billion, falling short of Wall Street’s expectations. The company also reported a disappointing 40 cents per share earnings, compared to predicted estimates of 42 cents. This sharp decline marks the company’s steepest revenue drop in over a decade.
In response to the loss of the EV credit, Tesla has already started to adjust its incentives. Taneja noted that the company would begin “paring back” perks as demand shifts. Recently, Tesla introduced benefits like free supercharging and discounts for military personnel and first responders to attract buyers.
CEO Elon Musk described the current period as a “weird transition” for Tesla as it grapples with changing incentives and the evolving regulatory landscape for autonomous vehicles. Taneja also highlighted the impact of tariffs imposed by the Trump administration, estimating they have increased costs by approximately $300 million this quarter.
With over 384,000 vehicles delivered in the last quarter, Tesla remains a prominent player in the EV market. However, the urgency for potential buyers to act quickly is palpable, as the company navigates unpredictable challenges ahead.
As the deadline for the EV credit approaches, Tesla’s message is clear: the time to act is now. Buyers looking to secure their vehicles before the potential loss of financial incentives must place their orders without delay. Stay tuned for further developments as this situation evolves.
