"The federal electric vehicle (EV) tax credit expires at midnight, ending a 17-year policy pillar that helped close the price gap with gasoline vehicles and turbocharged adoption; the immediate fallout is likely softer demand, leaner EV production, and a strategic pivot by legacy automakers toward hybrids and profitable ICE nameplates, while stopgap leasing workarounds cushion some of the blow. The end of the subsidy is a structural shock already rippling upstream: battery makers face a growing US surplus"
""customers are not interested in a $75,000 electric vehicle. They find them interesting. They're fast. They're efficient. You don't go to the gas station. But they're expensive." The good news for car makers, Farley added, is that "partial electrification is more interesting to customers than we thought ... we think hybrid, EV plug-in, E-revs, those kind of partial electric solutions, America is going to fall in love with, or already is falling in love with.""
The federal $7,500 electric-vehicle tax credit expired at midnight, removing a 17-year policy pillar that narrowed price gaps with gasoline vehicles and accelerated EV adoption. Immediate impacts include softer consumer demand, reduced EV production, and a strategic shift by legacy automakers toward hybrids and profitable internal-combustion nameplates, while leasing workarounds temporarily cushion demand. Battery makers face a growing U.S. surplus and shelved factory plans, undermining reshoring ambitions and creating a whipsaw risk of future shortages if capacity is cut too deeply. Forecasts for U.S. EV market share have been revised significantly lower from prior expectations.
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