Tesla Ups Model Y Production at Giga Texas as U.S. EV Credit Expiry Nears

Tesla is ramping up Model Y production at its Gigafactory in Texas, as the end of the U.S. federal EV tax credit looms on the horizon.

According to longtime Tesla observer Joe Tegtmeyer (@JoeTegtmeyer), Giga Texas recently adopted a new production schedule for the Model Y that adds 1.5 hours to each workday — now running Monday through Thursday from 6:00 a.m. to 6:00 p.m. The factory is also receiving new equipment deliveries, with a massive robot spotted being hoisted into the third-floor mezzanine of the main factory building, alongside upgrades in the paint shop and switchyard areas.

The production boost comes just weeks after the U.S. government passed a bill to scrap the $7,500 USD federal EV tax credit, effective September 30, 2025. With only two months left before the credit expires, Tesla is preparing for a potential end-of-quarter sales surge as buyers try to lock in their purchases before the incentive disappears.

Tesla is already responding with a record number of promotions across the U.S., including discounts on inventory vehicles, referral bonuses, and low financing rates — part of a broader effort to stoke demand ahead of the credit’s sunset.

Meanwhile, speculation continues to mount around Tesla’s long-rumoured affordable EV, which was allegedly spotted in public just a couple of weeks ago. The low-cost vehicle is expected to enter volume production in Q4 2025 — timed perfectly to kickstart a new wave of demand following the expiration of the federal tax credit.

With Model Y production already on the rise and Tesla’s next-generation vehicle waiting in the wings, the electric carmaker looks set for a busy second half of the year.