The Trump administration’s decision to phase out the federal electric vehicle (EV) tax credit has led to a significant impact on the market. According to data from the United States Department of Energy, over 20% of EV buyers are affected by the phase-out, with many opting for more affordable options as a result.
In 2020, there were approximately 368,000 electric vehicles sold in the US, with the majority being priced above $30,000. However, the phase-out has led to a surge in demand for cheaper alternatives, with some models now available for under $20,000. This shift is reflected in sales data, which shows that over 15% of EV buyers are now opting for vehicles priced below $25,000.
The impact on the market is significant, with many manufacturers experiencing a decline in sales as a result of the phase-out. For example, Tesla’s Model 3, one of the most popular EVs on the market, saw a 10% drop in sales during the first quarter of 2022 compared to the same period the previous year.
As the federal tax credit continues to phase out, it is likely that we will see even more significant changes in the market. With over 1 million electric vehicles sold in the US in 2020 alone, the impact on the industry will be substantial.
DennisCW | wen myp
@DennisCW_
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May 20 The “One Big Beautiful Bill” just passed House committee — here’s how it will affect EV purchases and Solar.1.$7,500 EV Tax Credit – Eliminated
No more massive $7,500 Incentive on Tesla and other EVs2. $250 Fed Annual EV Fee / $100 for Hybrids
A new federal road-use fee
CBS Evening News
@CBSEveningNews
·
23h The “big, beautiful bill” ends federal tax incentives for electric vehicles. Buyers will have until September 30 to qualify for the federal tax credits on EVs before they are terminated.
@NikolenDC
has more on how the legislation will impact the renewable energy industry.
GreenergyDaily
@ChnGreenEnergy
·
21h Sweeping tax and budget legislation approved by Congress on Thursday means $7,500 tax credits for buying or leasing new electric vehicles will end on September 30, as well as a $4,000 used EV credit. #USA #EV $TSLA
NIO Seattle
@NioSeattle
·
17h Ouch — Elon helped Trump get back in, and now this administration is sticking it to him hard. What a savage way to say thanks.Effective September 30, 2025:
•No more $7,500 federal credit for new EVs
•$4,000 credit for used EVs is gone too
SMMT
@SMMT
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14h A lack of governmental purchase and charging incentives, combined with fiscal disincentives such as the newly applied VED Expensive Car Supplement (ECS), which is estimated to impose an effective fine of more than £360 million on BEVs bought from April in this year alone, are
Tom
@TradingThomas3
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22h BBB passed which states $7,500 EV credit for new vehicles and $4,000 used vehicles Ends September 30.Going to be huge rush to buy $TSLA this quarter
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