The U.S. $7,500 EV tax credit still expires after Sept. 30, but the IRS is giving potential buyers a little more time to acquire electric vehicles from Tesla, General Motors, Ford Motor and others.
The $7,500 tax credit applies to any qualified EV acquired by Sept. 30. But, in new IRS guidance released on Thursday, "acquired" means having a written binding contact with at least a nominal down payment. Buyers will receive the actual tax credit when they take possession of the vehicle.
When Trump signed his budget into law on July 4, buyers were initially required to take possession of the EV by Sept. 30 to receive the tax credit. That meant that the effective deadline for the tax credit could be days or even weeks earlier, if automakers needed to ship specific vehicles to the buyer across the country.
The new guidance gives Tesla at least a couple more weeks to rack up U.S. sales before the tax credit expires, with some of the deliveries spilling over to the fourth quarter. After that, U.S. EV demand is expected to tumble.
Rally Just Passed Huge Test. Here's The Next.
Tesla Stock
Tesla stock climbed 1.9% to 346.60 on Monday, after briefly topping a 348.98 handle buy point.
On Friday, shares jumped 6.2%, vaulting above all the moving averages. TSLA stock also broke the downtrend of the handle, offering an aggressive entry. The relative strength line for TSLA stock is well off its 52-week high, but has hit a two-month best.
General Motors stock dipped 0.15% to 58.28 Monday. Shares popped 3.3% on Friday, extended from a buy zone and nearing a 52-week high.
Ford stock rose 0.7% to 11.82 after gaining 3.6% on Friday. Shares are near a flat-base buy point of 11.97, but are actionable from just clearing a short-term high.
Tesla, GM and Ford appeared to move Friday on the Powell-led market rally and not the IRS EV tax credit guidelines, which weren't widely reported.
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