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Boyden Gray PLLC partner Michael Buschbacher discusses the role of the electric vehicle on The Bottom Line.
President-elect Trump is expected to reveal more of President Biden’s green initiatives after returning to the White House, including legislation aimed at encouraging the production and purchase of electric vehicles (EVs).
On the buy side, Trump’s transition team is said to already want to get rid of it tax credit of $7,500 for the purchase or lease of certain types of EVs and plug-in hybrids that were proposed as part of Biden’s signature Lower Inflation Act of 2022.
President Biden drives the Ford F-150 Lightning at the Ford Dearborn Development Center in Dearborn, Michigan on May 18, 2021. (Nicholas Kamm/Getty Images)
The reduction in federal subsidies is seen as a major problem for consumers who want to buy an EV or may be thinking about buying one.
“The EV tax credit was designed to make electric vehicles affordable for the average consumer and they have,” said Scott Kunes, COO of Kunes Auto & RV Group. “We have seen EV sales and leasing increase significantly as a direct result of the federal tax.
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Shawn McLaughlin, CEO of Emporia Energy, said FOX Business Industry research shows that many current EV owners were motivated to switch because it was their way of doing their part to help the environment.
A driver takes a Tesla electric car to charge at a Tesla Supercharger in Santa Monica, California on May 15, 2024. (Photo by PATRICK T. FALLON/AFP via Getty Images/Getty Images)
He says that to continue EV growth, car companies need to attract new, cost-conscious buyers.
“Regressing in government support and incentives Implementation of EV it will slow EV sales growth over the next few years by making EVs less cost-competitive,” McLaughlin said.
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However, even if the tax credit is eliminated, the market will change to meet the needs of EV customers.
“With improvements in battery technology and manufacturing, the net operating cost of EVs will approach the cost of ICE vehicles in 2026-2027, which will begin to attract more affluent buyers regardless of the EV tax credit,” added McLaughlin.
Auto expert Mike Caudill confronts California’s controversial use of electric vehicles as police vehicles during an appearance on ‘The Big Money Show.’
Kreg Peeler, founder and CEO of EVject, a disruptive EV-connector, agrees — but predicts that big changes are coming to automotive industry which will put an end to the EV tax debate.
“Over the next 10 years, it doesn’t matter what consumers think about EVs,” Peeler told FOX Business. “It’s AVs (autonomous vehicles) that win.”
“When full autonomy begins, car buyers will no longer be drivers. Fleets will be large,” he predicts. “Most commuters pay for their rides per kilometer or per minute and will not buy their own car.”
