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Proposed Changes to Federal EV Tax Credit – Part 2: End of the Manufacturer Sales Phaseout

EV Adoption

Arguably the biggest flaw in the Plug-In Electric Drive Vehicle Credit ( IRC 30D ) regulations is the triggering of a phaseout schedule of the tax credit when a manufacturer sells 200,000 total EVs (BEV and PHEV). Elimination of the Manufacturer 200,000 EVs Sold Phaseout Threshold.

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Volkswagen aims to debut new affordable electric vehicles in 2027 with prices around $22,000

Baua Electric

The new affordable VW EVs are expected to be priced around $21,800 (20,000 euros). VW still aims for affordable EVs to debut in 2027 After walking away from its partnership to develop an entry-level EV (20,000 euro) with Renault, Volkswagen is going solo. VW said last week it was still looking at its options for affordable EVs.

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Kia to launch affordable EV4 electric sedan next year with an ambitious production goal

Baua Electric

Kia will launch EV4 production in early 2025, aiming to build 70,000 models a year to meet the demand for affordable EVs. A new affordable EV is coming next year Kia unveiled the EV4 last October as part of its new lineup of mass-market electric vehicles. According to Kia, the EV4 “redefines the electric sedan.”

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Hyundai and Kia launch new LFP battery project for lower-priced EVs

Baua Electric

South Korea’s leading automakers are doubling down on their efforts to cut EV costs with new battery tech. Hyundai and Kia eye cheaper EVs with LFP battery tech Hyundai and Kia launched a new project to develop lithium iron phosphate battery cathode material for future EV models. The Casper Electric starts at just $22,800 (31.5

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Tesla confirms new Model 3 Performance configuration is coming

Teslarati

It was the most expensive of the three Model 3 offerings, but it still qualified for the EV Tax Credit. In October, the Parts Catalog showed Tesla was potentially working on a Plaid version of the Model 3. Early in 2024, Tesla removed the Performance configuration from the Model 3’s list of available trims.

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Nissan and Honda may team up to slash EV prices and take on Chinese automakers like BYD

Baua Electric

Nissan and Honda are considering teaming up to introduce more affordable EVs to compete with Chinese automakers like BYD. BYD, which started as a battery maker, has a significant advantage by building nearly all vehicle parts in-house. With the $7,500 EV tax credit, the EV starts at under $40,000.

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How EV adoption is soaring in unlikely circumstances, and what could make it better

Teslarati

Tesla, for example, axed the $35,000 Standard Range+ Model 3 , and its most affordable vehicle now starts at well over $40,000. Price Parity and the EV Tax Credit. “Tax incentives available as part of the Inflation Reduction Act of 2022 will be critical to consumer adoption, helping offset the cost of pricey EVs.”