Electric vehicle sales accelerated in August as more buyers scrambled to purchase cars before the end of a lucrative federal tax credit, according to a Kelley Blue Book report.

EV sales hit a record 9.9% of the market last month — up from 9.1% in July, the report said. The increase follows the enactment of President Donald Trump’s tax and spending bill, which phases out a $7,500 credit for new EVs on Sept. 30.

“The current surge in EV sales is being driven by product innovation, motivated dealers and an urgency ahead of the IRA tax credit phase-out,” Cox Automotive Senior Analyst Stephanie Valdez Streaty said in a statement Wednesday.

As part of the 2022 Inflation Reduction Act, consumers who buy a new plug-in electric or hydrogen fuel cell vehicle can claim up to $7,500 as a federal ta

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