The renewed $7500 EV tax credit in 2022 seemed like a pleasant surprise for the EV industry and likely encouraged some producers to invest in EV cars and transportation. But the way that the stock market works, which discounts the future back to the present, it doesn't always reward Government handouts.
We can see that here in the
TSLA shares which in July 2022 were in a range of $314.67-271.81 and over 3 years later the stock had fallen as low as $101.81 and rebounded back to $488.54 in December 2024 before settling back in July 2025 at $338.00-$288.77, nearly identical to where it was when the $7500 subsidy was added.
I have made the overlay here of the IPO all the way to the peak in 2021 at 414.50 to remind investors thatTSLA has long periods of time sideways before big price advances. The 2019 bottom was significant because it was a crucial time when the financial condition of Tesla turned the corner after they struggled to raise capital due to poor credit ratings by the ratings agencies. The Tesla Model Y came out and all of the sudden it was clear that profitability was in the future. Model Y was on the way to being the #1 car in the world and Tesla would be able to raise capital and invest in the next generation of technology, its FSD or Full Self Driving hardware and software.
Tesla has come a long way since 2019 in driving down its costs of production to compete with gasoline cars. The disruption from 2020-2022 with supply chain issues and ramped up commodity prices slowed down progress on cost cutting, however the innovations in 48V, wire harnesses, giant presses and more have reduced processes and parts to drive down prices and make Teslas more affordable.
Since 2016, the price of a kWh of battery (that gets 3-4-5 miles per kWh in a car) has dropped from $500 to under $100, which has substantially improved affordability and profitability for Tesla.
Looking forward: There are many more products coming out of Tesla and will watch and try out each product as it comes out.
I hope you appreciate the chart ofTSLA shares compared to the EV TAX CREDIT from JULY 2022 until now so you can see how the stock has gone nowhere since then.
The EV tax credit expires September 30 and I imagine many will rush out to take advantage of that discount. States also have incentives. Check your state DMV website and see.
Regards,
Tim West
August 15, 2025. 11:34AM EST
We can see that here in the
TSLA shares which in July 2022 were in a range of $314.67-271.81 and over 3 years later the stock had fallen as low as $101.81 and rebounded back to $488.54 in December 2024 before settling back in July 2025 at $338.00-$288.77, nearly identical to where it was when the $7500 subsidy was added.I have made the overlay here of the IPO all the way to the peak in 2021 at 414.50 to remind investors that
TSLA has long periods of time sideways before big price advances. The 2019 bottom was significant because it was a crucial time when the financial condition of Tesla turned the corner after they struggled to raise capital due to poor credit ratings by the ratings agencies. The Tesla Model Y came out and all of the sudden it was clear that profitability was in the future. Model Y was on the way to being the #1 car in the world and Tesla would be able to raise capital and invest in the next generation of technology, its FSD or Full Self Driving hardware and software. Tesla has come a long way since 2019 in driving down its costs of production to compete with gasoline cars. The disruption from 2020-2022 with supply chain issues and ramped up commodity prices slowed down progress on cost cutting, however the innovations in 48V, wire harnesses, giant presses and more have reduced processes and parts to drive down prices and make Teslas more affordable.
Since 2016, the price of a kWh of battery (that gets 3-4-5 miles per kWh in a car) has dropped from $500 to under $100, which has substantially improved affordability and profitability for Tesla.
Looking forward: There are many more products coming out of Tesla and will watch and try out each product as it comes out.
I hope you appreciate the chart of
TSLA shares compared to the EV TAX CREDIT from JULY 2022 until now so you can see how the stock has gone nowhere since then.The EV tax credit expires September 30 and I imagine many will rush out to take advantage of that discount. States also have incentives. Check your state DMV website and see.
Regards,
Tim West
August 15, 2025. 11:34AM EST
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.