Tesla CFO Urges Customers To Order Now Or Risk Delay As Trump Nixes $7,500 EV Credit
Tesla CFO Vaibhav Taneja warned customers to order vehicles now due to potential delays from President Trump's regulatory changes, including the repeal of the $7,500 EV credit. He noted limited vehicle supply in the U.S. this quarter and urged early orders to ensure timely delivery. Tesla reported $22.5 billion in revenue and plans to introduce a more affordable Model Y trim, despite a 23% sales drop in Europe. The company aims to operate enough Robotaxis to serve half the U.S. population by year-end.
Tesla Inc.'s TSLA Chief Financial Officer, Vaibhav Taneja, has cautioned that President Donald Trump's regulatory changes could impact the EV giant's inventory.
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What Happened: "The one big bill has a lot of changes that would affect our business in the near term," Taneja said to investors during Wednesday's earnings call. He outlined that the repealing of the $7,500 EV credit is one of the first among those changes.
"Given the abrupt change, we have limited supply of vehicles in the US this quarter as we have already with the lead times to auto parts to build cars," Taneja said before adding that Tesla had already rolled out the planned incentives and will "start bearing them back as we start to sell," he said.
He then urged customers in America to place their orders for the cars now because the company may not be able to "guarantee delivery [of] orders placed in the later part of August and beyond."
Why It Matters: The news comes as Tesla reported a $22.5 billion revenue during its earnings call, with CEO Elon Musk setting an ambitious target of operating enough Robotaxis in the U.S. to serve half the country's population by the end of the year.
The company also shared plans to release an affordable trim level of the Tesla Model Y, which experts like Gary Black say could cannibalize the Tesla lineup in the U.S.
Tesla's sales also fell by over 23% in Europe during June, despite the region experiencing a growth in EV adoption. Tesla's current market share is over 2.8% in the region.
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