EV Tax Credit Changes: Ford Mustang Mach-E Unlikely to Qualify in 2024


ev tax credit changes ford mustang mach e unlikely to qualify in 2024

Earlier this year, the rules around EV tax credits seemed to be changing every other week. While things have calmed down since then, we’re about to see more action on the topic, as the Treasury recently released new guidance on battery materials sourcing that will upend credits for some EVs. The Ford Mustang Mach-E is one of them, as it may lose the partial credit it currently qualifies for.

Ford acknowledged as much, noting that the model on sale now is unlikely to qualify. Unsurprisingly, the automaker announced a production cut for the SUV in October and said it was delaying further investments, including the much-talked-about BlueOval project in Kentucky.

While Ford is telling its dealers that this is an opportunity to move some Mach-Es before the end of the year, it’s a troubling reversal from the automaker. Just a couple of years ago, Ford said it planned to triple Mach-E production, and we’re now hearing that it will cut output. The company has noted on multiple occasions that its electric business is losing money, and while it’s not abandoning EVs entirely, Ford has undoubtedly let off the throttle a bit in recent months.

The new tax credit guidance includes stricter requirements on battery sourcing locations. Going forward, battery components from a “foreign entity of concern” (China) won’t be eligible for credits. The rules expand again in 2025 to include battery minerals.

[Image: Ford]

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