The electric vehicle (EV) market in the United States has been fueled in recent years by generous government incentives. One of the most significant was the federal EV tax credit of $7,500, which helped make electric cars more affordable for buyers. However, that credit officially expired on September 30, 2025, leaving automakers with a challenge: how to keep customers interested in EVs now that prices are effectively higher.
To fill the gap, both Stellantis and BMW have stepped in with their own rebate programs designed to mimic the expired federal incentive. These programs offer buyers thousands of dollars in discounts, giving them a reason to move forward with an EV purchase despite the absence of government support.
The End of the Federal EV Tax Credit
The $7,500 federal EV tax credit had been a powerful motivator for customers sitting on the fence about buying an electric car. As the expiration date neared, EV sales surged across the country. Buyers rushed to dealerships to secure vehicles before the incentive disappeared, leading to one of the strongest sales months for electric vehicles in years.
But once the credit expired, the concern was immediate: EVs are already more expensive than many comparable gas-powered models, and without the incentive, the cost difference becomes even more pronounced. Automakers knew that without intervention, EV sales could slow dramatically.
Stellantis Steps In with Rebates
Stellantis, the parent company of multiple brands including Jeep, Dodge, Chrysler, and Alfa Romeo, confirmed that it will replicate the federal program for a limited time. Buyers of certain EVs and plug-in hybrid models can receive a $7,500 rebate, essentially canceling out the loss of the federal incentive.
Eligible Stellantis Models
The rebate is available on a variety of Stellantis vehicles, including:
- Alfa Romeo Tonale (plug-in hybrid)
- Chrysler Pacifica Hybrid
- Dodge Charger Daytona EV
- Dodge Hornet R/T PHEV
- Jeep Wrangler 4xe
- Jeep Grand Cherokee 4xe
- Jeep Wagoneer S (electric SUV)
Conditions for Stellantis Rebates
- Available only on vehicles already in dealer inventory.
- Customers must take delivery by November 3, 2025.
- The program could end early once the inventory is sold.
This urgency means buyers who want to take advantage of the rebate need to act quickly. Once the current stock is gone, Stellantis is unlikely to extend the offer to future shipments.
BMW Matches with Its Own Incentives
BMW has also decided to soften the blow for potential EV buyers. The German automaker announced that it will provide a $7,500 discount on its full lineup of fully electric models.
BMW’s Rebate Program
- $7,500 off MSRP for all fully electric BMWs.
- $5,000 rebate available for the BMW 750e xDrive plug-in hybrid.
- No rebates for other plug-in models like the 550e or the X5 xDrive50e.
Restrictions for BMW Customers
- Offers apply only to vehicles financed through BMW Financial Services.
- Rebates not available for leased vehicles.
- Buyers must take delivery by November 1, 2025.
This timeline is slightly shorter than Stellantis’s program, which gives customers until November 3.
Why Automakers Are Offering Rebates
The decision by BMW and Stellantis to replicate the tax credit isn’t just generosity—it’s smart business.
- Maintaining Momentum
Automakers saw how quickly EV sales surged before the credit expired. Without an incentive, they risk losing that momentum. - High Inventory Levels
Both automakers need to move EVs sitting on dealer lots. Incentives ensure these vehicles don’t go unsold. - Building Consumer Trust
Customers may feel burned by the loss of government support. By stepping in, automakers can position themselves as consumer-friendly brands. - Competing in a Crowded Market
With Tesla, Hyundai, Ford, and others competing aggressively, BMW and Stellantis can’t afford to lose ground just because incentives ended.
Impact on EV Buyers
For buyers, these rebate programs are a major relief. Without them, many shoppers might have postponed or canceled their EV purchase.
Key Benefits for Customers
- The rebates bring immediate savings, making EVs more affordable.
- Buyers can lock in discounts before inventory runs out.
- Customers get certainty, since automaker rebates don’t depend on federal eligibility rules.
However, buyers must act fast because both programs come with strict deadlines and limited availability.
The Bigger Picture – EV Market Challengee
The fact that automakers are stepping in to cover the gap left by the government highlights both the progress and the challenges of EV adoption.
- Progress: EVs are now widely available across brands, from luxury sedans to family SUVs.
- Challenges: High prices, charging infrastructure limitations, and consumer hesitation still remain.
Government tax credits helped smooth those challenges, and now automakers are shouldering some of that responsibility—at least temporarily.
What This Means for the Future
It’s unlikely that BMW and Stellantis will extend these rebates indefinitely. These offers are short-term solutions designed to maintain momentum until a longer-term strategy emerges.
Possible future developments include:
- State-level incentives filling some of the gaps left by the federal program.
- More aggressive manufacturer financing offers to keep monthly payments affordable.
- Introduction of lower-cost EVs to appeal to a broader audience.
The EV market is at a turning point, and these rebates could help smooth what might otherwise have been a rough patch.
Pros and Cons of the New Rebates
Pros
- Mimics the expired $7,500 tax credit for EV buyers.
- Makes EVs and hybrids more affordable in the short term.
- Encourages sales momentum in a challenging market.
- Helps automakers clear existing inventory.
Cons
- Rebates are temporary and tied to deadlines.
- Limited to in-stock vehicles (Stellantis) or financing rules (BMW).
- Does not address long-term EV affordability issues.
- Could leave customers uncertain about future incentives.
Conclusion
The expiration of the $7,500 federal EV tax credit could have delivered a major blow to the electric vehicle market in the U.S. Instead, automakers like Stellantis and BMW have stepped in with rebate programs that replicate the savings—at least for now.
For Stellantis, the rebates cover a wide range of EV and plug-in hybrid models, but only while inventory lasts. For BMW, the discounts apply to its entire electric lineup, but only under specific financing conditions. Both programs end in early November 2025, creating urgency for buyers.
While these rebates are temporary, they highlight the lengths automakers will go to keep EV adoption moving forward. For customers, the message is clear: if you’ve been considering an EV, now may be the time to act.
