Tesla supply falls. The cars just got more expensive.

Copyright © HT Digital Streams Limit all rights reserved. Al Root, Barrons 2 min Read 01 Oct 2025, 06:30 IT, which traded on Wednesday, the Tesla share was about 10% higher and about 72% over the past 12 months. (Getty Images) Summary The monthly rental prices displayed on Tesla’s website are now higher, now that the Federal Purchase Tax Credit of $ 7,500 EV has disappeared. Tesla shares fell before the Open on Wednesday until October, the first month that buyers do not have access to the $ 7,500 Federal EV purchase tax credit after being eliminated in the tax and spending account of President Donald Trump. The loss has already affected prices for Tesla vehicles. Shares of electric vehicles manufacturer were 0.4% at $ 443.10 in the trading of Premarket, while S&P 500 and Dow Jones Industrial Averyre Futures fell by 0.5% and 0.4% respectively. The move followed the price increase of Tesla for vehicle leases. Tesla displays monthly rental prices on its website, and the monthly cost for a hired model Y is now between $ 529 and $ 599, higher than a previous range of $ 479 to $ 529, Reuters reported on Wednesday. Shacker prices for Tesla’s cars were unchanged. The preceding rental prices reflect a $ 7,500 reduction in the sticker price of the vehicle. With leases, the $ 7,500 tax benefit flowed on the rental enterprise that effectively owned the cars. This is usually the credit arm of car manufacturers. Ford Motor and General Motors recently announced a program with dealers to effectively extend the $ 7,500 advantage for rented vehicles. The company’s financing divisions essentially bought the cars before removing credit on September 30. However, it is a temporary solution. If the existing EV stock is away from traders, the new vehicles will not get a federal credit, whether it is rented or bought with cash. Losing the credit is essentially a price increase for EVs. The average EV transaction price in the US, before the credit is applied, is about $ 57,000, about $ 8,000 more than an average car with a gasoline. The tax credit helped close the gap. How the industry will adapt is difficult to say. Either prices will fall, or car manufacturers will sell less EVs. Tesla will report the third quarter delivery results on Thursday morning. Wall Street expects about 457,000 vehicles to be delivered according to Factset, from 384,000 in the second quarter. People buy more EVs before the credit decline. Tesla CEO Elon Musk warned against some ‘rough quarters’ ahead of the credit loss. However, investors do not seem to me. Tesla share increased by 40% in the third quarter. Investors are now more focused on opportunities for artificial intelligence. Tesla launched an AI-trained Robo Taxi service in Austin, Texas in June. It also uses AI to train humanoid robots. Tesla hopes to start selling significant quantities of those in 2026. Catch all the corporate news and updates on live mint. Download the Mint News app to get daily market updates and live business news. More Topics #elon Musk #Electric Vehicles Read Next Story