Regardless of how you feel about EVs and the tax credits offered by the federal government, the truth is that people are using the incentives. Since January 1, EV buyers have seen more than $1 billion in savings on their purchases, with around 150,000 new and used vehicle sales so far this year.
Importantly, that $1 billion number does not include leases, which would push the figures much higher. The government’s incentives are likely more popular this year because they changed from a year-end tax credit to a point-of-sale “discount” that buyers can use to immediately reduce their purchase prices.
The incentives have played a pivotal role in boosting EV sales, and the Biden Administration is continuing to push for a more robust charging network and protections against EVs from China. Credits of up to $7,500 are available, with half tied to the sourcing of battery raw materials and the other half to the vehicle’s final manufacturing location.
Even with the success of the credits, challenges remain for continued EV adoption growth. The government’s investments in public charging networks have so far yielded only incremental growth in the number of charging stations in the wild. Tesla, whose Supercharger network is widely regarded as being the most reliable and easiest to use, may take a step back with the automaker’s recent layoffs, though other companies may step in to fill the gaps.
[Images: Cadillac/GM, Ford, Chrysler/Stellantis]
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