The electric vehicle industry is experiencing turbulence as the EV tax credit is set to expire, creating challenges for startups like Rivian, Lucid, and Slate Auto. These brands previously relied on the tax credit for growth, but its expiration threatens to decrease demand by around 320,000 potential buyers. Slate Auto has notably adjusted its pricing strategy to remain competitive, anticipating the need to absorb costs rather than passing them on to consumers. Legacy automakers, meanwhile, are better positioned to withstand this market shift due to their established resources and hybrid offerings.
Many of these brands were banking on the EV tax credit to help grow their brands, and now that it's going away in less than two months, these brands will have to compete with legacy automakers who can ride out the storm.
As you've undoubtedly heard, the $7,500 EV tax credit is going away at the end of September. With it goes an anticipated 320,000 would-be electric car buyers, effectively putting a big hole in the buoy that has kept these EV-only brands afloat.
Slate, the Bezos-backed startup that originally promised an ultra-cheap, Saturn-like EV pickup for under $20,000, knows it will need to eat some of the cost that it can't pass on to consumer.
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