Tesla Clarifies US Tax Credit Eligibility As Expiry Nears

Tesla has updated its U.S. website with a clarification regarding the federal electric vehicle (EV) tax credit. Buyers now only need to place an order by September 30 to remain eligible for the $7,500 credit—even if their vehicle is delivered weeks or even months later.

This is now included on Tesla’s website, with a new banner that reads “order by September 30 to qualify.” Previously this stated “take delivery by September 30 to qualify.”

This change offers much-needed flexibility for customers and could give Tesla a boost in Q4 deliveries, since many buyers who feared missing the deadline due to a later delivery may now proceed with orders before the end of September.

What Changed with the Federal EV Credit

Until recently, there was widespread confusion over whether an EV had to be both ordered and delivered by September 30, when the current version of the tax credit officially expires. Last month the Internal Revenue Service (IRS) updated its guidance, making clear that eligibility is tied to the purchase contract date rather than the delivery date.

According to the IRS:

  • Customers must sign a binding purchase agreement before September 30.
  • A payment—such as a downpayment or trade-in—must be included.
  • The credit will only be applied when the vehicle is delivered and placed in service, but eligibility is locked in at the time of contract.

This update applies not just to Tesla, but to all automakers selling vehicles that currently qualify under the federal incentive program.

Why This Matters for Tesla Buyers

For Tesla customers, the clarification is particularly significant. Many Model Y, Model 3, Model S, Model X, and Cybertruck buyers face wait times for delivery, especially if their car is a custom factory build or being shipped across the country, extending delivery wait times further. Under the previous interpretation, those customers risked losing access to the incentive if their car wasn’t in their driveway by September 30.

Now, as long as they order before the deadline, the $7,500 credit is secured—even if delivery takes place later in Q4 or beyond. This provides peace of mind for buyers and may encourage more people to commit to purchases sooner rather than later.

Boost for Tesla’s Q4 Numbers

The timing of this update could have a major impact on Tesla’s sales trajectory. By reducing uncertainty, Tesla can capture more orders in September that will count toward Q4 deliveries, potentially helping the automaker hit record delivery numbers in the final months of 2025.

For anyone looking to maximize the incentive, the best advice is simple: place an order before the September 30 deadline, confirm the contract is binding, and secure the federal credit—no matter when delivery takes place.

Related Stories:
Tesla May Hike Model Y Prices in the U.S. as Tax Credit Deadline Drives Surge in Demand
Tesla Model Y Inventory in the U.S. Shrinks as Tax Credit Nears Expiration
Tesla Cybertruck now eligible for $7,500 tax credit in the U.S.

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