Why EV Tax Credit Going away is Good for Tesla (Patreon)

At first glance, losing the $7,500 federal EV tax credit in September 2025 sounds like bad news. But for Tesla, it’s actually great IMHO - here’s why

Tesla Doesn’t Need Subsidies - They Are Already the Only Carmaker That Can Turn a Profit on EVs - and They Sell the #1 Car on the Planet, the Model Y.

Other carmakers (like Ford and GM) who now dabble in EVs rely on tax credits to hide losses on their EVs. Tesla has been profitable for years without government help. Take away the credit, and Tesla’s strengths stand out more clearly. The others are in hot water. Make that boiling wter.

Tesla is planning the new model 2 aka stripped down Model Y which I hope will be sub-$35k - this could launch in 2 weeks or so. Without the credit, these models will look even more attractive compared to rivals’ higher-priced EVs, the TESLA TAM will explode, and they will achieve even more scale... oh and these cheap cars also drive themselves. Mad to think about.

EV Subsidies distort markets. Glad they are gone.

PS I am still in my Tesla Hedge, I sold a LOT of these yesterday for $21 now $13.