Tesla sales would remain strong even if EV tax credit eliminated, expert predicts

The draft reconciliation law, which is working on its way through congress, would cancel the tax credit of electric cars that were created under the law to reduce inflation. Credit removal, created to motivate American consumers to buy electrified cars, will probably lead to a decrease in sales and production of EV. However, Tesla sales are likely to remain largely not affected, as an expert predicts.

“The disposal of this tax credit of $ 7,500 should not affect [Tesla] The sales, “Lauren Car Expert”, told Fox Business.

The law of the beautiful major law was approved by the House of Representatives on May 22 in the 215-214 vote. If this procedure is approved, and it was signed in the law by President Donald Trump, the new tax credit for new vehicles and tax credit incentives amounting to $ 4,000 on EVS, as well as subsidies to manufacture batteries, says the text of the bill. The EV credit, which started during the Obama administration, is scheduled to end on December 31, 2032. The new ruling is “the expiration of the expiration to December 31, 2025”

According to the Trump team, the Trump team is to kill the tax credit of $ 7,500

Reform said that the end of clean vehicle tax credit would lead to a sharp decrease in EV sales in the United States.

“Once this tax credit disappears, I expect [electric vehicles] “The Reform” said, noting that EVS is currently about 8 % of the total car sales in the United States. [Elon Musk] You will do well. And other brands will make what consumers want. “

Federal tax credit was reduced in half for some of the Tesla Model 3 in 2024

Tesla, the leading EV company in the United States, has focused on selling carbon balances to other auto manufacturers than the tax incentives for consumers. The company, which transferred the bulk of its production to Texas, has become “more efficient and effective” in its manufacture, according to reform.

The law of one beautiful law recently passed the House of Representatives and moves to the Senate. (Mandel NGAN / AFP via Getty Images / Getty Images)

“What Tesla did, and they really do not care about the $ 7500 tax credit, is that they were selling carbon balances for all other cars manufacturers,” he said. “This is where they achieved their profits.”

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Meanwhile, other leading car manufacturers such as Hyundai and Ford may decide to reduce the production of electric vehicles if the single large bill is signed to the law.

“You will see that production quantities are dramatically,” he said. “The only reason why manufacturers build electric cars to start with them is that they were assigned to do so.”

Tesla Elusk CEO during the CI Hall of Convention at Green Bay and Wisconsin, on March 30. (Jimmy Kelter Davis / Bloomberg via Getti Emponon / Tire)

In January, Trump issued an executive order “to cancel the authorization of electric vehicles and enhance the selection of real consumer.”

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Tesla, Hyundai and Ford Motor Company did not respond immediately on the request of Fox Business for comment.