"GM Offers $7,500 Incentive For EVs Losing Tax Credit" - Reuters News
Portfolio Pulse from Benzinga Newsdesk
General Motors (GM) is offering a $7,500 incentive on its electric vehicles (EVs) that are no longer eligible for a U.S. government tax credit due to new Treasury guidelines on battery sourcing. The Chevrolet Bolt remains eligible, while the Cadillac Lyriq and Chevy Blazer EV lost the credit. GM expects these models to regain eligibility in early 2024 after a sourcing change. Other affected vehicles include the Volkswagen ID.4, Nissan Leaf, some Tesla Model 3s, and Ford Mach-E. The number of EV models qualifying for U.S. tax credits dropped from 43 to 19 due to the new rules set by the 2022 Inflation Reduction Act.
January 03, 2024 | 3:44 pm
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NEGATIVE IMPACT
Ford's Mach-E has lost the U.S. EV tax credit eligibility under new Treasury guidelines, which could affect its competitiveness and sales.
The ineligibility of Ford's Mach-E for the EV tax credit may reduce its appeal to cost-conscious consumers, potentially leading to a short-term negative impact on Ford's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Tesla's some Model 3s are among the vehicles losing eligibility for the U.S. EV tax credit, potentially affecting demand for these models.
The loss of tax credit eligibility for some Tesla Model 3 variants may deter potential buyers, leading to a possible decrease in demand and short-term negative impact on Tesla's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
GM is providing a $7,500 incentive to offset the loss of the federal tax credit for some of its EVs, expecting affected models to regain eligibility after sourcing changes.
GM's proactive incentive may help sustain sales momentum for its EVs in the short term, mitigating the impact of losing the tax credit. However, the overall market effect is uncertain, as it depends on consumer response and the speed of the sourcing changes.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100