Part 2/11:
Tesla announced that its budget-friendly Model Y—targeted at a price point below $40,000, likely around $32,000—would launch in July 2025. This timeframe seemed ambitious but plausible. Yet, around the same period, President Joe Biden signed the "Big Beautiful Bill," which explicitly canceled the U.S. federal EV tax credit, set to expire on September 30, 2025—just a day after the supposed launch month.
This coincidence is crucial. The $7,500 tax credit had been an immense incentive for American consumers to purchase EVs, including Tesla's Model Y and Model 3. Its imminent expiration created a surge in demand before October 1, prompting many buyers to accelerate their purchases to benefit from the subsidy while it lasted.