Top Selling EV Models Set To Lose Incentives, Will The Market Go Bust?

Tesla Inc. and General Motors lead the U.S. auto industry in sales of plug-in vehicles.

In a traditional vehicle segment, that would be cause for celebration. But in an emerging market for plug-ins, it has meant investing billions of dollars in vehicles that aren't yet profitable while also being first in line to lose sizable tax credits for their customers from Uncle Sam.

Tesla, perhaps as early as July, is expected to be the first automaker to hit a 200,000-unit sales mark that triggers a phaseout of the federal tax credit currently worth up to $7,500 toward the lease or purchase of a new plug-in hybrid or electric vehicle.

vdiv - 6/25/2018 1:00:36 PM

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What's the price of gas lately? Over $3/gal.? You don't say!

TheSteve - 6/25/2018 2:51:01 PM

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(IF?/)When gas gets closer to $5 gallon, consumers will value fuel economy differently.

MDarringer - 6/25/2018 5:47:58 PM

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Once again, TheSteve is wrong. When gas under Obama approached $5 a gallon, large vehicles continued to sell very well.

TomM - 6/25/2018 6:17:36 PM

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Matt - where are you getting this NONSENSE about gas prices under Obama.

The highest ever gas prices were in 2008 and reached $4.11 cents per gallon UNDER George Bush.

Average Gas prices under Obama never broke $4 per gallon.

MDarringer - 6/25/2018 7:17:12 PM

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@TomM once again you prattle on and spew fake news.

KoruKinshi - 6/25/2018 4:07:19 PM

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I'm so sick of EVs. Go back to diesel and start working hydrogen cars.

MDarringer - 6/25/2018 4:53:19 PM

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Rumor has it that VWAG has a new, premium, diesel crossover that can "roll coal" the Audi Schwitz.

KoruKinshi - 6/25/2018 5:40:10 PM

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Your point? That's a pretty terrible joke. Don't forget that most trains in America run diesel. Same with construction equipment, and a plethora of American pickup trucks, as well as big rigs.


Seriously now, do you think before you post?

MDarringer - 6/25/2018 5:45:49 PM

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Non-sequitur?

TomM - 6/25/2018 6:27:58 PM

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One of the things that some people who left deposits on the BASE Tesla Model 3 - was that availability of a $7500 tax incentive - which of course a decision by MUSK not to produce the cars at that level - means that most of them will not be eligible for it - resulting in likely lost sales.

Again - the longer the wait - the more likely that sales will be taken by other manufacturers - for those who really want an EV - However - there is still no indication that there is a HUGE demand for these things - and I believe the market will be oversaturated with them within 2 years.

SanJoseDriver - 6/26/2018 1:09:22 AM

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450k pre-orders is not an indication of huge demand? What about the fact that the Model S and Model 3 are already the best selling cars in their class right now? Every auto manufacturer is investing billions in EVs right now--the demand is obvious as costs fall.

KoruKinshi - 6/26/2018 1:33:54 PM

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It's because of the tax credits. I've looked at a Tesla in person and sat in one. I'm not impressed, especially for the price. Also, as an enthusiast, the fact I have to keep the charge close to 80-90% to get the full strength of the motor out of the car is asinine. I want my power on demand, when I want it, as soon as I put my foot on the throttle.

I thought this site was supposed to be a car enthusiast page??? I've been on Autospies for over 10 years, and it's devolved into this trash.