Overview

• New EVs hit records heading into the deadline, with August sales at 146,332 and market share at 9.9%, and Q3 expected to set an all‑time high, according to Cox Automotive and J.D. Power.
• Used EV sales jumped 59% year over year in August to 40,960, with average prices near $34,700 and the price gap versus comparable gas cars narrowing to the smallest on record.
• The IRS clarified buyers can lock in the credit with a binding contract and nominal payment or trade‑in by Sept. 30 even if delivery occurs later, prompting automakers like Tesla and Rivian to push last‑minute orders and leases.
• Executives and analysts warn of a near‑term sales drop once the incentive expires, with potential responses including price cuts, richer promotions, and production reductions; average EV incentives topped $9,000 in Q3, per Cox Automotive.
• California’s Clean Air Vehicle HOV access ends Oct. 1 with a 60‑day CHP grace period, and the state signaled a shift toward expanding charging infrastructure rather than replacing the federal rebate.