Green energy cultists are about ready to get hit with a dose of reality.
The Electric Vehicle (EV) market has long been supported by hope, skilled marketing, and a $7500 tax credit that disappears on October 1.
The tax credit, passed by the Biden administration in 2022 to support EVs, is going away Wednesday as part of President Donald Trump’s broad spending and tax bill. The loss will cut into demand for EVs, which means prices in real terms will immediately rise — a concept not lost on the many consumers who rushed to buy EVs in August and September.That surge could result in plunging sales in the final three months of the year. As a result, automakers are weighing where to set sticker prices and incentive levels to maintain demand, which could lead to lower EV prices. But it’s not clear how much total savings the changes will provide, and likely won’t make up for the money lost from the end of the tax credit.
The New York Times, being the climate cult shill that it is, insists the plunge in the EV market will be only temporary.
Still, most industry executives believe electric vehicle sales will eventually grow again, especially if automakers can deliver models that sell for around $30,000.Analysts from J.D. Power recently noted that electric vehicle sales fell sharply in Germany and Canada after those countries ended subsidies in December 2023 and January 2025 but eventually started growing again. A similar pattern could play out in the United States.“These are cars that people like,” said Albert Gore III, the executive director of the Zero Emission Transportation Association, a trade group. “They’re ultramodern, and they’re fun to drive. Some manufacturers have decided to scale back their pace, but I think those who continue to bring compelling, affordable E.V.s in high volume will be richly rewarded.”
However, automakers are certainly making some intriguing adjustments. General Motors (GM) has slashed output at one of its main electric-vehicle factories.
GM will stop production of two electric Cadillac SUVs at its assembly plant in Spring Hill, Tennessee, during the month of December, according to a person familiar with the matter and communications to GM employees viewed by Reuters.The plant produces the midsize Cadillac Lyriq – a relative hit and one of GM’s top-selling EVs – and the Vistiq, a larger electric SUV.GM also plans to significantly curtail production of those vehicles during the first five months of next year by temporarily laying off one of its two shifts of workers, according to the sources. The company will additionally shutter the plants for one week in October and November.The automaker is also planning to indefinitely delay the start of a second shift at an assembly plant near Kansas City, which is still slated to begin production of the Chevy Bolt EV later this year, the person familiar with the matter said.
Meanwhile, both Ford and GM are offering lease deals that effectively provide potential customers with a $ 7,500 subsidy.
General Motors are racing to sign up car dealers for programs that would effectively extend the use of a $7,500 U.S. tax credit on leases of electric vehicles beyond the Tuesday expiration of the federal subsidy, according to dealers and documents.Each company in recent days has rolled out programs to their retailers under which the automaker’s financing arm would initiate the purchase of EVs in dealers’ inventory by making down payments on them, according to dealers briefed on the previously unreported programs and documents from the companies.Those down payments will qualify the lending arms for the federal $7,500 tax credit on those vehicles, according to the documents and dealers. From there, dealers would offer leases on those cars to retail customers as usual for several more months, with the $7,500 subsidy factored into the lease rate.
The EV tax credit has been around for 15 years. If Americans were ready to deal with “range anxiety“, “charger hogs“, cars that won’t start in the deep freezes of winter, battery fires, and infrastructure that isn’t built or stolen for copper, then they wouldn’t need the incentive package.
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