Tesla, Nissan, and GM vehicles among the latest EVs to lose U.S. tax credits

The recent change to battery sourcing regulations has led to many electric vehicles losing eligibility for tax credits valued up to $7,500. Manufacturers like Tesla and General Motors have been impacted, with certain EV models no longer qualifying for the tax credits.

With the rapid development of the electric vehicle industry, essential aspects such as battery sourcing are closely monitored to accelerate the U.S. electric vehicle supply chain. For example, Tesla’s Cybertruck is expected to qualify for the federal tax credit in 2024, indicating that the industry’s shift to new regulations is ongoing.

In response to the new rules, Ford and General Motors have experienced varying impacts on their electric vehicle offerings. While Ford’s E-Transit, Mach-E, and Lincoln Aviator Grand Touring plug-in hybrid lost tax credits, its F-150 EV Lighting and the Lincoln Corsair Grand Touring retained credits. Similarly, General Motors noted that all its EVs, including the Lyriq and Blazer EV, temporarily lost eligibility due to minor components but are expected to regain eligibility after sourcing changes in early 2024.

Promisingly, automakers are adapting their supply chains to ensure continued eligibility for the new clean vehicle credit, as well as committing to creating jobs and investment opportunities in the United States. Additionally, Volkswagen and Nissan are working to confirm eligibility for federal EV tax credits for their vehicles after the new regulations took effect on January 1st.

It’s critical for consumers to stay informed about changes in federal tax credits for electric vehicles, especially as the industry continues to evolve. With the new rules in place, it’s clear that eligibility requirements for such credits are being closely scrutinized, and automakers are committed to navigating these changes to the benefit of consumers and the industry as a whole.