How automakers are reacting to the end of the $7,500 EV tax credit

The article discusses how automakers are responding to the upcoming expiration of the $7,500 federal tax credit for electric vehicles (EVs). Tesla has announced that it will raise the prices of its leased vehicles to offset the loss of the tax credit. Meanwhile, Ford and General Motors (GM) may have found a way to continue offering the tax credit to their customers. The article explains that the tax credit is set to expire once a manufacturer sells 200,000 EVs, a threshold that Tesla has already reached. This means that Tesla customers will no longer be eligible for the credit, prompting the company to raise lease prices. In contrast, Ford and GM are exploring ways to keep the tax credit available to their customers by transferring the credit to the leasing company, rather than the customer. This could allow them to maintain the same effective pricing for their EV models, even after the tax credit expires. The article highlights the different strategies automakers are adopting to navigate the changing landscape of EV incentives in the United States.