Electric vehicle sales are experiencing dramatic acceleration as automakers rush to capitalize on federal tax incentives before their September 30 expiration. General Motors exemplifies this trend with 111% quarterly growth in EV sales, capturing 16% of the US electric vehicle market and securing Chevrolet's position as the second-largest EV brand behind Tesla.

The impending elimination of up to $7,500 in new vehicle tax credits under the Trump administration's One Big Beautiful Bill Act has triggered unprecedented dealer incentives across the industry. Dealerships are offering lease deals as low as $99 monthly for Volkswagen ID.4 models and $101 for Chevrolet Equinox EVs, with manufacturers providing substantial cash-back bonuses to accelerate inventory turnover before credit expiration.

Market analysts identify this sales surge as artificially elevated due to the approaching deadline rather than organic demand growth. GM CEO Mary Barra acknowledged expecting significant "pull ahead" effects before September, noting that 2026 will reveal actual underlying EV demand without federal subsidies. The company has achieved variable profit positive status on EV operations, meaning revenues exceed direct manufacturing costs for the first time.

The credit elimination represents a critical inflection point for EV market development, as manufacturers must transition from subsidy-dependent sales strategies to profitability-driven approaches. Success in the post-incentive environment will likely depend on achieving cost reductions through improved battery technology and manufacturing efficiency rather than relying on government support to drive consumer adoption.