Kia, Hyundai and VW Lose US EV Tax Credits

The US has adjusted its list of which car models and companies get the full $7500 EV tax credit. Kia, Hyundai and VW lost the $7500 US EV Tax Credits (until they adjust their car batteries sourcing and other issues). They can still sell their EV car models but they cost about 10-20% more versus the competing EV car models with full or most of their credits.

This could increase Tesla market share from 62% to about 70% in the USA in 2023. Tesla could avoid having to reduce prices on cars in the US. Tesla could move an additional 80,000 cars from increased Texas production without cutting prices this year.

The Tesla Model Y has become or is becoming the top-selling car model of any kind in many countries. This means it is outselling gasoline car models and not just EVs.

China and European countries are going to about 25-45% EV market share.

8 thoughts on “Kia, Hyundai and VW Lose US EV Tax Credits”

  1. US protectionism, who would have thought… from the nation that talks about the power of free markets.

  2. This is good for Tesla. They could raise the cost of their cars by another $1k to fund several victory laps.

    Live by the government handout, die by the government handout. Adios GM.

  3. You can still get the tax credit if you lease the car. So one strategy to get the tax credit on these foreign made EVs is to lease the car and immediately pay off the lease.

    • How does that work? Unless you pay off the lease with cash, how would the financing on that for a loan work? When I was out hunting for a loan, the best rate was new car sale direct from a dealer. Would a credit union/bank give you a loan on a leased car?

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