Think about buying EV? Most of them are scheduled to become more expensive than $ 7500 in October

Later in the day, the president is expected to sign the tax cuts package and spending plans known as the big beautiful bill. Although he will raise the roof of the debt by $ 5 trillion, the Trump administration has decided, as of October, that there is no financial deadline for Sam to support the purchase of EVS anymore.

This can soon witness a defending EV buyer at the last minute in the next three months, at a time when car makers-who are known in this industry as original equipment manufacturers, or original equipment manufacturers-may start reducing the speed of the collection line so that they do not stumble with the excess stock once the support is over. Many empty agents can be the result, even before the end of September.

“To alleviate the financial impact and potential stock problems, we believe that the original equipment manufacturers may decide to reduce EV production in the United States starting from Q325.”

Federal tax credit will be the date at the end of September – more than the end of the year as it was originally planned.

More importantly, rental credit will also end. EV rental deals have become very popular since it came 7,500 dollars No continuous chains This option for the consumer EV, such as the degree in which the car was manufactured and the battery package in the United States.

Credit purchase of $ 4,000 for EVS used is also going away in September.

Biden plan to bridge the ability to withstand costs against the combustion engine cars

Federal tax credit was presented in Beginning 2023 As part of the Act of Inflation, President Biden Program has been named in this way because it has passed at a time when the high cost of living has turned into a bad word.

The previous administration wanted to reduce the price gap between the internal combustion engine cars and EVS, which often approaches $ 10,000 due to costly minerals such as lithium and nickel used in EV battery packages.

Although tax credit helped to ignite the benefits, it did not deal with the ability to bear the costs completely. Ev buyers cannot only claim it in their annual tax provision, which means that they still need the available money to pay the full price in the beginning. Musk referred to this in October of that year.

He told investors during a quarterly profit call: “It should be noted that many of these incentives such as tax credit and so on are very difficult for the ordinary person to reach, because most people do not have $ 10,000 or even 7500 dollars burning a hole in his bank account.” “They cannot have $ 7500 for 18 months – or even six months for tax credit.”

Manufacturers may offer higher discounts to expand part of the strike

However, in January 2024, this was changed with the tax credit application directly at the point of sale, immediately reduces the cost and get rid of the troubles of consumers.

How manufacturers adjust EV prices to the new reality at this stage is unclear. Some can choose to provide part of the discount to reduce the strike. A number of brands took this approach in Germany when the government was forced to eliminate the support of the “environment reward” to buy EV as part of the emergency review to the budget.

However, the Trump bill simultaneously It cancels fines To overcome the rules of the average fleet economy (café). This means that there is a lower incentive for old car manufacturers to pay EVS, which is not profitable and now suddenly more expensive.

The result can be the Renaissance of the internal combustion engine cars that place the United States on a completely different road from the rest of the world, as EV continues to grow.

UBS added: “In the long run, we believe that the original equipment manufacturers will focus on ice models in the American market amid the relaxation of emissions and the lack of EV incentives.”