EVs at Risk: Which Models Could Lose the $7,500 Tax Credit Under Trump?

As the incoming Trump administration considers eliminating the $7,500 federal tax credit for electric vehicle (EV) purchases, many EV models and manufacturers could be significantly impacted. Let's take a closer look at which EVs might be most affected and how this change could influence the broader EV market.



1. Tesla (TSLA) Models:
* Tesla's Model 3, Model X, Model Y, and Cybertruck are all eligible for the full $7,500 tax credit.
* Elon Musk, Tesla's CEO, has previously stated that the elimination of the credit would be "devastating for our competitors and would hurt Tesla slightly."
* Tesla's market share in the U.S. EV market is significant, with nearly half of all EVs sold in the country being Tesla vehicles.
2. Ford (F) F-150 Lightning:
* Ford's popular electric pickup truck, the F-150 Lightning, is eligible for the full $7,500 tax credit.
* Ford's executive chairman, William C. Ford Jr., has lobbied Trump against a repeal of the credit.
* The F-150 Lightning has been a strong seller for Ford, and the elimination of the tax credit could impact its sales.
3. General Motors (GM) Chevrolet Bolt EV and EUV:
* GM's Chevrolet Bolt EV and EUV are eligible for the full $7,500 tax credit.
* GM has not been as vocal as Ford or Tesla in lobbying against the repeal of the credit.
* The Bolt EV and EUV are GM's primary electric vehicle offerings, and the elimination of the tax credit could impact their sales.
4. Stellantis (STLA) Models:
* Stellantis, the parent company of brands like Jeep, Ram, and Dodge, has not been as vocal as other manufacturers in lobbying against the repeal of the credit.
* Some of Stellantis' electric vehicle models, such as the Jeep Wrangler 4xe and Ram 1500 REV, are eligible for the full $7,500 tax credit.
* The elimination of the tax credit could impact the sales of these models.



The removal of the $7,500 EV tax credit could have significant implications for the pricing strategies of EV manufacturers, consumer demand, and affordability. Higher prices due to the removal of the tax credit may lead to a decrease in consumer demand for EVs, potentially impacting the sales and market share of the affected models. Additionally, the elimination of the tax credit could make EVs less affordable for many consumers, particularly lower-income individuals.

In conclusion, the potential elimination of the $7,500 EV tax credit under the Trump administration could have a significant impact on the sales and market share of various electric vehicle models and manufacturers. As the incoming administration considers this change, it is essential to weigh the potential consequences for the broader EV market and the broader energy and automotive industries.