Automakers are getting creative with how to sell EVs in the post-tax credit era

"With the sunsetting of the $7,500 tax credit on September 30, car companies are coming up with other ways to entice the US EV buyer - or re-thinking their path to electrification entirely. On Tuesday, Tesla unveiled a lower-cost version of its popular Model 3 and Model Y vehicles, which removes features such as power seats, FM/AM radio, and Tesla's driver-assistance software, Autopilot. The trade-offs amount to about a $5,000 price reduction."

"Meanwhile, other legacy automakers are offering discounts on existing EV models. As of Tuesday, Hyundai was advertising on its website a $11,000 cash back incentive for select trims of the 2025 Ioniq 5. Ford and General Motors are also exploring ways to extend the $7,500 tax credit by allowing down payments on EVs at dealer lots, according to a Reuters report."

The $7,500 federal EV tax credit ended on September 30, prompting automakers to find other ways to sell electric vehicles. Tesla released lower-cost versions of the Model 3 and Model Y that remove power seats, FM/AM radio, and Autopilot, lowering price by about $5,000. Hyundai offered up to $11,000 cash back on select 2025 Ioniq 5 trims. Ford and General Motors are considering dealer down-payment strategies to capture tax-credit benefits. Industry analysts say automakers are using varied, creative approaches aimed at sustaining, not growing, EV sales, and some companies are eliminating EV models.

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