Reality Dose: EV Demand Expected To Plummet If Tax Incentives Go Away

The $7,500 EV tax credit—the key to America's growing interest in electric cars—is on life support. President-elect Donald Trump has signaled interest in his incoming administration's desire to pull the plug on the time-of-sale credit made possible through the Inflation Reduction Act, and alarm bells are ringing for analysts who anticipate a significant drop-off of demand.

 

Specifically, experts are expecting the EV industry to take an immediate nose dive of around 27%. That might not seem like much, considering that the overall market share is still under 10%. However, just picture 317,000 fewer EVs on the road each year, because that's the possibility.