So much for Ford and GM’s scheme to extend the EV tax credit

Ford and GM have backed off their plan to extend the $7,500 electric vehicle tax credit for customers through the end of the year. The automakers were working with their dealer networks to allow customers to continue receiving the tax credit on leased EVs, but this plan has now been abandoned. The tax credit was set to expire on September 30th, and the automakers were hoping to keep offering the discount to customers in the short term to maintain EV sales momentum. However, Republican Senators raised concerns about the legality of the plan, leading GM to drop out first, followed by Ford. While some automakers, like Hyundai and Stellantis, have offered cash incentives to bridge the gap for buyers, Ford and GM took a different approach. They sought to buy EVs from their own dealers and lease them to customers with the $7,500 discount baked into the price. But this plan has now been deemed unviable. Experts predict that with the tax credit gone, EV sales are likely to plummet, as the credit had been a significant driver of recent sales spikes in July and August.