"Simply put, their products are not priced attractively enough for what they offer, and there is no true advantage to buying EVs developed by legacy companies. These tax credits have helped companies simply compete with Tesla, nothing more and nothing less. Without them, their products likely would not have done as well as they have. That's why these companies are now suddenly backtracking."
"As the tax credit's loss starts to take effect, car companies that have long relied on the $7,500 credit to create sales for themselves are starting to adjust their strategies for sales and their overall transition to electrification. On Tuesday, General Motors announced it would include a $1.6 billion charge in its upcoming quarterly earnings results from its EV investments. Ford said in late September that it expects demand for its EVs to be cut in half."
The elimination of the $7,500 federal EV tax credit is prompting legacy automakers to reassess EV strategies and recognize inflated demand figures. General Motors will take a $1.6 billion charge tied to EV investments, Ford projects EV demand to fall roughly 50%, and Stellantis has abandoned plans for all-EV production in Europe by 2030 while Chrysler cuts U.S. EV targets. Subsidies had masked unattractive pricing and weak consumer preference for many legacy EV models, enabling competition with Tesla but not sustainable market share. Tesla stands to benefit as competitor products face true-market pricing without credits.
Read at TESLARATI
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