Boyden Gray PLLC partner Michael Buschbacher discusses the concerns surrounding the electric vehicle mandate in The Bottom Line.
President-elect Trump Many of President Biden's green initiatives are expected to unfold upon his return to the White House, including legislation aimed at incentivizing the production and purchase of electric vehicles (EVs).
On the buy side, Trump's transition team is already looking to get rid of it $7,500 tax credit to buy or lease certain electric and plug-in hybrid models passed as part of Biden's signature 2022 deflation law.
President Biden drives the Ford F-150 Lightning Electric at the Ford Dearborn Development Center in Dearborn, Michigan on May 18, 2021. (Nicholas Kam/Getty Images)
Eliminating the federal subsidy has the greatest potential impact on consumers who want to buy or may be considering buying an electric car.
“The EV tax credit is intended to make EVs more affordable for the average consumer,” said Scott Coons, CEO of the Auto & RV Group. We've seen an increase in electric vehicle sales and rentals as a direct result of federal tax incentives.
EPA allows California to ban sales of new gas-powered vehicles by 2035.
Emporia Energy CEO Shawn McLaughlin said FOX Business Industry research shows that most current EV owners were motivated to make the switch because it was their way of doing their part to help the environment.
A driver plugs in a Tesla electric vehicle for charging at a Tesla Supercharger location in Santa Monica, California on May 15, 2024. (Photo by PATRICK T. FALLON/AFP via Getty Images/Getty Images)
He argues that to continue growing EV adoption, the auto industry needs to attract new buyers who are more price-sensitive.
“Back in government support and incentives for EV acceptance Electric vehicle sales growth will slow over the next few years, McLaughlin said, because the current supply of EVs is less competitively priced.
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However, even if the tax credit is eliminated, the market will adjust to meet the needs of EV customers.
“As battery technology and manufacturing improve, the unsubsidized cost of EVs will reach the same level as ICE vehicles by 2026-2027, which will attract cost-sensitive buyers regardless of the federal EV tax credit,” McLaughlin added. »
Auto expert Mike Caudill reacts to California's controversial initiative to use electric cars as police vehicles during an appearance on the “Big Money Show.”
Craig Peeler, founder and CEO of EVject, an EVject charging interface, agrees — but predicts a huge change is on the way. automotive industry which discusses the debate over tax credits for electric vehicles.
“In 10 years, what consumers think about electric cars won't matter,” Peeler told FOX Business. “It's the AVs (autonomous vehicles) that are winning.”
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“With the spread of full autonomy, car buyers will no longer be drivers,” he predicts. “Fleets will become mainstream.” Most travelers pay for their trip per mile or per minute and do not purchase their own vehicle.