#automaker-strategy

#automaker-strategy

It's being called the EV slowdown. It is the idea that electric vehicle sales in America are expected to either cool off or completely crash, depending on who you ask, now that the $7,500 tax credit is gone. Some of that is indeed part of a natural reality check, as it turns out not all new-car buyers in the U.S. are just ready to quit gasoline cold-turkey by the end of the decade.

The question was: "What's your prediction for EV sales over the next two quarters after the EV tax credit expires?" And about 60% of you predicted a steep decline. I don't totally disagree, although I do think some automakers will try to pass along the $7,500 federal tax credit through other price reductions for at least one quarter. Automakers with fresh EV models slated for late 2025 and 2026 may be better positioned than competitors. However, tariffs are also bound to shrink margins.