The end of the federal EV tax credit?

[Sikkun]

the government funding electric vehicles through your paycheck

Not like my tax rate is going to go down. At this was funding something useful.

Better than it going to pumping DOGE coin.

Sponsored

 

[ipca204]

Not like my tax rate is going to go down. At this was funding something useful.

Better than it going to pumping DOGE coin.

well, you wouldn't say that if you had several thousand Doge your son told you to buy at .02 cents each....lol

 

[Mach1E]

I doubt it. If the net long-term profitability of most EVs across the entire US industry is reduced by $7,500 per car, normal market forces will increase prices across the entire industry.

Ford's strategy is said to involve cutting costs to eliminate the huge losses they've incurred in their EV line in recent years. That already was going to be extraordinarily difficult. It may soon get even more difficult, by about $7,500 per vehicle.

The tax credit “went away” before for Tesla.

And their prices dropped by $7500.

Guess what happened when the tax credit came back? Their prices went up by over $7500.

Not sure why this time would be any different.

 

[DennisD]

I am not sure what will happen to the MME but it will be interesting I am sure.

EV Article

 

[johnnycombo]

I wonder, what would happen if all the give away$ to “Big Oil” were ended?

 

[david_quick]

Since I didn’t qualify in 23 the tax credit has no bearing on my decision to buy. I understand people taking advantage and if I could I would certainly have done so.

 

[shutterbug]

I wonder, what would happen if all the give away$ to “Big Oil” were ended?

Absolutely nothing. People with cars would still need to buy gas.

 

[johnnycombo]

Absolutely nothing. People with cars would still need to buy gas.

Except the price at the gasoline pump would sky rocket and that would make electric vehicles a much better deal.

 

[Blue highway]

The tax credit “went away” before for Tesla.

And their prices dropped by $7500.

Guess what happened when the tax credit came back? Their prices went up by over $7500.

Not sure why this time would be any different.

it will be different because the price of the T was ~10K more then than it is now. I doubt there is $7500 margin per car left to make up the full loss of tax credit for T.

A better estimate of where the car prices might wind up is Kia/Hyundai which mostly don't qualify for tax credits today.

 

[nlions]

We won't know what the tax credit fate is for a bit but I didn't get it on my 2023 Premium because of the Contemporary Amperex Technology Limited (CATL) made battery.

 

[davegram]

It certainly affects me. I ordered a 2025 and was hoping I'd get at least the partial tax credit, since Ford is partnering with LG to produce batteries in Michigan.

That said, I saw this coming. I'm having my home EV charger installed in a week or so, which will allow me to get the 2024 federal charger credit of 30%. That's something at least.

 

[Mach1E]

it will be different because the price of the T was ~10K more then than it is now. I doubt there is $7500 margin per car left to make up the full loss of tax credit for T.

A better estimate of where the car prices might wind up is Kia/Hyundai which mostly don't qualify for tax credits today.

We shall see.

But the “market” determines car prices and as Tesla has shown in the past, they react quickly to market changes and raise and lower prices significantly and quickly.

I don’t see how next time it would be any different (for Tesla that is).

Other manufacturers like Ford react more slowly but still react.

A 2024 Mach E is a lot cheaper than my 2021 was.

 

[davegram]

A bunch of automakers and battery companies invested into factories based on the $7500 Made in America EV requirements.

Would be a damned shame if all those states that won the factories lost those jobs because the tax incentives got killed.

This is the biggest loss to me, if the ev tax credit does indeed go away. I hope there is some alternative plan put in place to make American EV manufacturing plants make fiscal sense for car companies.

 

[Blue highway]

We shall see.

But the “market” determines car prices and as Tesla has shown in the past, they react quickly to market changes and raise and lower prices significantly and quickly.

I don’t see how next time it would be any different (for Tesla that is).

Other manufacturers like Ford react more slowly but still react.

A 2024 Mach E is a lot cheaper than my 2021 was.

It's different because if any company has >$7500 margin left in the car, they could drop the price and go on... if you only have say $4000 margin left you can't just drop the price $7500.

when the cars cost $10K more than they do now, they had that margin... It's unlikely they do now at current prices.

 

[zvez]

the credit was only 3750 when I bought my 23. So not a huge deal for me.

Sponsored